CTA Case No. 1861 (Decision)

� J:o~PUDLIC OF THE PHILJPPINF..r COURT OF TAX APPE.&.Ul QUEZON CITY .. - ,q1'(>' l .. . . .. 1 - -- - ~ - . - - - - ~ ~ - .) �� � - 191

- � - � 9 i � � � t c. t c � i� 19 2

� tbli ' t ti .. t t 1 1l on, not it a 0 m�1 �tdli p y.nt l tic t ~'-l.to- u, r l'+t J~. ... ~- i io J r '& o. 'I d� f - 3] � n n� ' for t! � ' l 't 193

p id <1tt . b:ru r1 1 , 196' be .o� t o:t: 3; ,~ 6. u : J.52;2?6 . o, re:pre 4!1h't;f.,ng th 1n~C'.I t 1 b\llLty "'.!'om th � p � a\ion ! the tnttl~ttc U.tvis�iO . ann Hy .;reg natea Oil j)1 i 10Jl' ;: p e.tivelf:s or tt ae J. p $.o en4 Jun 30, l: .,..� en et tis- ?t 1%5, P ~~t1t.1 nc~r ree~1V$ , tw .( ) l ttera tr m ~.e pcn44i t; both !let� �Ap~ll 6, l9f>5, .2e em&ri ttl pa w.$n.t. ot~ tne lt of ~>99,,787 1 eUn u � u nter t on the i.tloome t ~ for the p~,ti <i June o, 1. '2 � t tb.fl Sy.u:th�t1 � et r~ent ui i ioll t� a of � 42, 37 ~ <laJ.i tunc tnter et o tb � i ttttt . or t~ fQ:t: th s m � a~io � / th llfdrO&~ . ted J. s ~i v. ~io � n l t&.r d ad oat�ooer 23, 1965, pat.J:ti � ~� prot 1te the.se a$� s...ae.n s c~nt~n4 . , ~moDI � tnars.� tb.at tn r-etu.rr.ts �.� re .i."'iJ. in w;-suan o~ �" ttcn 1fJ ot t e l.;e.t1onal In nal f v u1 � Code � u,. tit .t� t�Ott�tt� tu t duE. tb.e.r on iUU .. t be IH~ci t;lpo.n not1~ and ~ema,n(\ b,i� he C<.J.�ruul.is1 l1el:' .tzf IntEu"tltf lifl w1u.e :ttti � ,Prota t 1 .owever, pond~"lt. 1to, h1e letter ~ t K � , 19 ?'� ~ne _nl.J UQo:tti\:1n o tJ l'esolv - a.n tt s oe. . .ill Wl~tt"l~ or .tJot p titlcmer 'Wa tl l i l � iient 1n tbft p 1m n r -e eltnq enC)' �-~~- �.IJ. . 1 !:' � po ...<.ulu ... �~ .rt1 . . e.r~� ot tb. p.rov1~.U.cu::..s ? 19 L1

�l tt . y '� 1t!Gz: erf i ttl v nt :.La 1� 11, r1 if it tc tit 1 leg 1 priu .,l � rp.,r t on, bJ�Ct t. !nco ' �� ' l1 r u Otu, tn f'orf� i t n � uon C't a 'I 1ft .r . tn. .on �( ), lev .) �f ut il u 0 r l 15 r d. 11 .>' ... t cal a � :W yh t r th o . 'Y , 11' tb.e aecountit pa 1 �d 1 tiao l y r � t ) t ! �n l ~ i ul rt tnu t1�oal ,1 t h up � in ' h ~~ 19 5

t c nd 1 l t, �n or th ti 1 ( ... h 0 -:r o;r � t t� n wit 'l t p or ' p � �:rn in .n t r c~o,,_- on�.in � p 1 ol � 1u i ve ua �J vc\. lu.tio.n 1 t. .. ' y tf e a 0 n nt� .... ai fJ \iU 1.ou, r ti. r) %" t 1 Q f.i ~D~1 ::~1ti f ll> -. ,.,, 1 n A � ~m h re "' �" o~� t c �� e '0 ' vn\ l. n� di til \,lt n 1 re ~t~ r :tt a~pco .. .... t .l :I :l . fll . .~or . ;;;; . t t' ,av, :, 1 n 1P o' t I) � !l Q tne t ~~ 19 6

"'TA - l. ~ l !I 7 ,~.n.e i th.. u 0 .P tl '"' ~� tb: ' c }hi J. pUl rt n 'w r t � 'l' fie 1na o L iOtl � �""<�. t 0 r_1 r 81" tb pt1.or, o"' tn rea ut1 t t 1tat1 on ne part () th d ~~1 , th re 1. n r or ti .n i . < Q(J,w t ~til l.'r' r. r 't s aa ,r Jl'~C li . u.i. 1 t .. s 1' t ' 7 l X.� " fl J liC"' t' c s ii 1 ri� t 0 t e PP c v1th t .x; i 1J.:J t~ n 0 1\:$ :r "" oUl 1 tiled . ' ,..l.f.w) ~t IJ. 'd v ~ � i' 19 7

-' X� � 1 . ' ol �o ll on '~� - p 1 o� ' t I 198

� t t ) (� ' ' 1-. 1 t '., " � r ' l� t .~ Q l l c- J 1' ,. tn 1 r1 199

c :l!t J:S ' - ll 11 0r t att e u an pro t �r L c � .. t.>4. r: .. 1,. n- t a 1 pl on ttl+ -- 0 til' ~~, e1t ,,.1:1 ' 1t 0� tQ ion w � 0 . a cor- t ) . ti - i 0 .i wh r or '}}' t 1\ If ut 0 '1C 't tr ,, 200 l

1 1 t".t -t ,,l. �Q ly ~ ' "! J .,.....l ~v .me f \10 ;follow t 1 0 fi : u� 1 f t� e r . et l t 1" on 24~ tn .ti~ ~ (2) ) ,) :. ets ., uu� - ou 1:' n ~ t c rpor i 1 ia r 201

� l ) .r i - p � ) 7l � � , - � ; u t� t 'I .! t t l � 1 v11 cor or ... i' 202

203

- .. � b til �I � � � b11 .n r th� t r . tu s u.td tb. co T r hall turt 1 b l' 1 ct il i c , r q� r d t~ b fl 1 i . wv t l nti r.JJJ: t~ u.ired t�b.1 pin ol"por t ,1 l) �o t I;l'v 1s1 n� ot �ion 78 of .. 2 0 .to ~44 f ' V$�Ul ul ti ~:m t� 1 r"' �:� :r nt.ed t q. tl)tt. t.ti 0 or tt � i t ! '' i :r t 1 , or 1$ tho ,l t r "' tr ,, 0 ' � 204

. nt � 1 � it f 0 ' 10 t1o 1 it tn. � i i� 205

� tin ' ' 1 � oc,o d n 1 t ttl :P%' vi~.~.... , t t1 . 18� liti .. (I .t ' ~1!!1!!11 �,1:1li. .:..l to , il 1 r the .v���~�...d-t. t. wW.le ; Q r pna 1 :to be erg ;~.t 1v1 fa a af 'Ovw.~�'...uilliJ. \,IVJal11fP;~t au\.w..�r'1 lit, 196:~ o.t n t J: r t .o l' ,4~5. tit tt.�� l ,..i'V !1 (!f) " �~ ' 1: t11 J l J l ;, tl n t tl tb.&� t ;tt � liOW�VGl't tJ.t1cn :t i h ' l t 9' Ql1 t '3 - .nt .( ) 0i t1 t e b. n t lle; ' y � 1 et w cel1n. 0 1: tor , l,?22.T" 206

� OC"=' � 'I i f c � 1 t y. � ' ,. ' 0~V~?~~7 .L 1t~ � . C.':! ,. 207