CTA Case No. 2348 (Resolution)

IP"' .,EPUBLIC OJP TKE PBILIPPINEI I COURT OF TAX APPE.A.LI . QUEZON CITY Zhl�ffiOANGA CITY RURAL BANK, INC., Petitioner, - versus - COJ.'vllliiSSIONER OF INTERNAL ' REVENUE , Respondent . X- - - - ------X RE S 0 L UT I 0 N Submitted for resolution is respondent's motion, dated December 29, 1971, seeking the dismissa! of the instant appeal on the ground 'that this Court has no . jurisdiction to entertain the same. On September 22, 1971, respondent, through the B.I . R. Regional Director of Zamboanga City, assessed against petitioner the amount of ~10 ,987.92, as defi- cienc-y income tax, inclusive of delinquency penalties, for the period from January 1, 1969 to June 30, 1969. In ,a letter dated October 27, 1971, petitioner pro- tested the aforesaid assessment and requested that the same be reconsidered � . The Regional Director , on October 28, 1971, wrote petitioner a letter deny~ng its protest and at the same time informed it that he was forwarding the case to the Commissioner of Internal Revenue for final resolution. On November 20, 1971, petitioner instituted the present appeal without waiting for the final decision of respondent on his request for reconsideraUion. We find respondent's motion meritorious . The letter of the B. I . R. Regional Director of Zam-

� RESOLUTION - - 2- CT CASE No � . 2348 boanga City, dated October 28, 1971 , denying petition- er �s request for reconsideration of the assessment is not the appealable decision within the meaning of Sec- tions 7(1) and 11 of Republic Act No . 1125 , the relevant portions of which provide - SEC. 7 . Jurisdiction .-The Court of Tax Appeals shall exercise exclusiv~ appellate juris diction to review by appeal , as herein provided - (1) Decisions of the Commissioner of Internal Revenue in cases involving disputed assessments , refunds of internal revenue taxes , fees or other charges , penalties imposed in re- lation thereto, or other matters arising under the National Inte r nal Revenue Code or other law or part of law administered by the Bureau of Internal Revenue ; X X X X X X SEC . i1 . Who may appeal ; effect of appeal .-Any person, association or corpora- tion adversely affected by a decision or rul- ing of the Commissioner of Internal Revenue , x x x may file an appeal in the Court of Tax Appeals within thirty days after the re- ceipt of such decision or ruling . � X X X X X X (Underscoring supplied) It has been held that the word udecisionu or / "ruling" mentioned in the above provisions of law whfch can be the basis of an appeal to this Co~rt is the final decision or ruling of the Commissioner of Internal Reven ue. In other words , the element determinati ve of the appealability of a decision is its finality1 and the determination thereof rests , 1see St . Stephens Ass . vs . Coll . of Int . Rev ., .104 Phil . 314 ; Philippine Planters I nLvReess t.m? eNnot . Co ., Inc .,vs . , Comm . of I nt . Rev .,� C. T. A. Case 1266 . Nov . 11 1962 ; Algue , Inc . vs . Comm . _of Int . Re v., CTA Case No . 1620 , Jan . 19, 1968; Dy Pac & Co ., Inc . vs . Comm . of Int . Re v., CTA Case LRes .? No . 1945 , July 31 , 1969 ; Constanti- no vs . Comm. of Int. Rev., CTA Case LRes .? No. 2084 , April 29, 1971.

RESOLUTION - - 3- CTA CASE No. 2348 not with the taxpayBr) but with the Comraissioner of Internal Revenue2. � The ruling of the B.I . R. Regional .Director of Zam- boanga City, dated October 28, 1971, which is being .ap- pealed to this Court, is not the final decision or rul- ing on the questioned assessment because the Regional Director chose to refer petitioner's case to respondent foT final decision . This can be gleaned from his letter, the pertinent portion of whLch states: In the light of the foregoing, it is tne opinion of this Office that the Zam- boanga City Rural Bank, Inc . is subject to corporate income tax during the period from July 1, 1968 to June 11, 1969 . However , this case , on even date, is forwarded to the Com- missioner of Internal Revenue for his final resolution. A copy of our transmittal let- ter is herewith enclosed for your reference . (P . 10 , CTA rec ., underscoring supplied . ) Also, in his transul1ttal letter to res;o .~.uent , the ~ e- gional Director requested that a final ruling be made on the 'issue involved so that his office could be guided accordingly . The relevant portion of said . letter reads : In view of the foregoing, it is res- pectfully requested that a final ruling be made on the issues involved in order that this Office could be guided accordingly . The above actuations of the Regional Director reveal unmistakably his intemtion not to consider his letter, dated October 28, 1971, denying petitioner ' s protest , as a final� .and appealable decision; otherwise , he would not have referred the matter to his superior , respondent herein , for final ruling . Conseque~tly , . 2Algue, Inc . vs . Comm . of Int . Rev ., supra ; Philip- pine Planters Investment Co ., Inc . vs . Co~n . of Int . Rev ., supra.

c RESOLUTION - -~- CTA CASE NO . 23~8 the filing of the present petition for review is pre- �mature and, therefore, this Court has no. jurisdiction over the same . WHEREFORE, the instant petition for review is hereby dismissed for lack of jurisdiction. Without pronouncement as to costs . SO ORDERED . Quezon City , February 11, 1972 . WE CONCUR: ;,;/~�s:~Cdo ?R. ~ALV.F? Associate Judge . !~ i L ~ R.A.HON L. AVANCENA Associate Judge