CTA Case No. 4694 (Decision)

REPU BLIC OF THE PHI LI PP INES COURT OF TAX APPEALS QUEZON CITY BPI FAK I LY SAVINGS BANK, INC�� Peti t ioner, - versus - C. T. A. CASE NO. 4694 COMMISSIONER OF INTERN~ REVENUE. Respondent. X- - - - - - - -X DECISION This case is a claim for refund in the amo unt of P112,490.81 , as alleged overpaid i ncome tax f or 1989. Petiti oner is a domestic c orporation duly o rganized and existi n g under the laws o:f the Ph ilippines. For t he year 1989, Petitioner rec eiv e d rental in c o me :for leasi n g s p aces in its Aead Bffice a n d branch offices, from which Petitioner's lessees withh eld the a mo unt o:f P 1 12 , 490.81 under the expa n ded wi t hh o lding tax regulations. The withheld amount was decl a r ed by t he Petitioner as rental in co me in its income tax return for t he y ear 1989 <Exhibit A) . . T he aforesaid income tax return showed that Petitioner al legedly suffered a net loss of P8,286,960.00 f or that year. Hence, according to the Petitioner, the e n tire a mount 1 'L1. ,

DECISION - C.T.A. CASE NO. 4694 - 2- o� P112,490.81 under creditable withholding shoul~be re.funded to it. ~ On October 11, 1990, Petitioner �iled with Respondent a written claim �or re�und o� the said amount <Exhibit "D" and "D-1">. Without waiting for Respondent to act on the claim and to interrupt the running o� the prescriptive period, Petitioner �iled the instant petition for review on December 27, 1991, seeking the re�und o� the a�oresaid amount. The sole issue is whether or not Petitioner is entitled to the re�und o� P112,491.81 as alleged overpaid income tax �or 1989. Reproduced, hereunder, is the Petitioner's 1989 _, Corporate Annual Income Tax Return <Exh. A> which shows the following computations: Income P1,017,931,831.00 Deductions 1, 026, 218, 791. 00 Loss <P 8,286,960.00 > Tax Due NIL Less~ Prior Year's Excess Credit P185,001 Various 112,491 297,492.00 Total Amount Refundable <P297,492.00>� � To be applied as tax credit to succeeding Taxab le Year. <Emphasis supplied)

DECIS ION - C.T.A. CAS E NO. 4694 - 3- Note should b e tak en that the amount o:f P112, 491.00 being claime d :for re:f u nd is part and parcel o:f P 297 ,492.00 which p r esumpt i ve l y wa s already applied as t a x c r edit to the s uc c eed i ng taxable year 1~\o. Such presumption , o:f course, could h a v e been overturned had the Petitioner submitted. its 1990 Corporate Annual Income Tax Return showing that it did not automati cally credit the said amount to the s ai d ta xab~e ye~r 1990. Un:fortunately, ~titioner :failed to s ubm i t t h is vital document. Fa "lure on the part o:f the Petitioner to sustain i ts claim is :fa tal :followi ng t h e ti me - tested do ctrine that clai ms :for re:fu n d are constru e d s t r ictly against claimant <Commissi oner o:f Internal Reven ue vs. Led esma, 31 SCRA 95) . Thus, to grant Petitioner's re:fund despite the :f a c t that sai d amount was appli ed a s tax c redit by Pe t iti oner i n the taxable year 1990, is de t ri mental to the interest o:f th e Government as the same is tanta mo un t t o granting Petition er twice the r e:fund o:f the same amount. (see Resoluti on, Paseo Realty Development Corporation vs. Commissioner o:f Internal Revenue, CTA Case No. 4693 , Oc tober 21, 1993). WHEREFORE, in all th e :foregoing, Petitioner's claim :for re:fund is hereby DENIED a nd this Pe tition :for Re view i s DISMISSED :for la c k o :f mer it. 1J 4~

DECISION - ~ C.T.A. CASE NO. 4694 er 24, 1993. "' - 4- ~ ~~,J..,~ SO ORDERED. Quezon City, Metro Manila, RAftON 0. DE VE A Associate Ju e WE CONCUR: ~cQ,~ ERNESTO A. ACOSTA Pr esiding ~.GRUBA Associa-e Judge CERTIFICATION I hereby certify that this decision wa s reached after due consultation among the members of the Court of Tax Appeals in accor da nce with Section 13 Article ) VII of the Constitution. ~a .. C2~ ERNESTO D. ACOSTA Presiding Judge Court of Tax Appeals