CTA Case No. 3470

DECISION -

under letter of demand and assorament Likewise, notice dated Fetruary 27, 198d for deficiency income tax» for the ¢ Prat. forss pyar oristurn CF Acid: UUnallowabibe cheduestvoarrs riRarytss Meat ineccme roinvestigqeation

Praleds

try 4 Léa Compr omni compl lan ney

TOTAL TAX DUR AMD C1

ee ACD oro 4 ASS, SS for near cP owas kiybrodcd- we ay ato

NN

mere hes coy April 1&6, ASL but denied by hhe Commissioner caf Internal Fee mele wn Tho omay be omoted thal the proc@acding of the case movecd ah oaddairg peed havang been

(13) times by the pebithioner with the coy accu ance of dhe respondent andy toa have the é sane submitted for decision on the basis of the ELF records ane pie Be that oas oho may, theo oe {PP OEE ry bea fear four determination the validthy af Fhe defiretency oO op) amernte which pebibdener cooepsieboers bo hae ore legal nor fartual ta:

3, to wits

L)

ine lusive for P44, 2 we of interesk and gsurcharqe an Ube lena arpa th of per propertie Petitbiemer avers thak bhrere ws. “rey ocd dee bien Or qras ean from obha aldeger achawities of ct F t lea af wrrald prey wipe otiachy bee be Ceppetes pe the tax inpe Shear 2S tay? Bre Tae 0 Tire ore pork oof diy i Siqgaat ten horeseayverr iad that pebitdoner cheriver vimernbal Porame from a bes lease of machtnerse@s and eijuapimet bo an affaid:

Vellore Rain doe Car peor at lars y wan the Lim mf PO74, 400,00 for the year ain qureshion, bah failed be file ao oreturn and pay Phe correspootineg pencen hagre tax odie thereon pursuant ba Ser tobomes FRE Cad and 191, wipiches ye hoary CrP, aT oerf the Ta Rode Crim See hiians LOs(a), were eave oes ae AS amencdect. The amen hk odiravi by the respondent Connm i Loner compar wi tty hig peestmodliorn af verity and the petitioner has the burden of proving Lt wrong. It failed. Brough ho bear oupoem the circumstances obtaining there apmeses ne oa 2 LAN to further specttlate when and where bhe mhaipes mere bk { 67 fall, cay We bhrormefoarc fiom) compad bec les affirm the import and force oof such samen th based an the renporeh of faimedhiags whieh may mot te suffered to peteify am futility.

2) De fa antoy dimmome har ain khe amount of P74, 035,92, inclusive of dintleras The cquestien for ceterminaticn te whether petitioner ais entitled bo cecdueh fram ate qressacs amorhigatLian for {i} PLO, OO), fe) development and omprovemerrkes oof tlre or in the Lumber fore orm, are (27 PLO, v4 Fe ex pene parks and ipplaes dnecered an the orcinary cours of busirie Irn diaallorwinag Vive oheadmer mechs hia y respondent considers the fa "Tap reosemen bes oor grounds of which Phe taxoayer a Les he la ko be a capital any Rment oand net deductible as hus iness eoipern al lewsacd.

Apparent |

respondent es posdhion apes ewe Clese te thea role that an @xpenditure for capital improvement should nova Ob peoauah cdeoreeiakion omoharcge, arte reed cheed an aedadprearsy: arrct

DECISION —

CTA CASE NQ. 2470

Re

pander bakes weikhy tye sere Ne deduction from gra fmooceme may he made for ary amount expended in restoring orouperhy or mating good the exhaustion for which an allowance far tf depreciation has been mace. Thies, he alloeranee ry af anly FiGg,o74, leaving the amount ar capitalized and therefore disallowed, popper yh Comm d ee eapep oa dingeby ercsemp herent hcg that astancard ain ¢ and found that the payments dn caontroveray came ' Closer obo capital ocala ys viva fax ompceitparss arid

Pe:

Arey SM pest Wy hye pers bon af oa His findings have the gupgneorh oof a presumption of corre ane the Lame bree bbe hrureber af proving oatherywi Amc, me hang in fhe recor:

shows ¢ woule ho gqeremit the hoa vive bhak @x ben to whak petitioner claims ordinary and mece amend mlessh confirmed.

Suffice dh therefore, bob the caircumesedanes abtaining ane the relevank leg shancarus compel the conclusion that petitioner failed to prove 69

DECISION —

CTA CASE NO. 2479 eantiblement to e fevoratie dekwrindiabivn for bhes . REYE

WE CONCUR :

Quacte ;

AMANT

LLER

irfg Judge CONSTANTH C. ROAGUIN

Asaactatai Jucdqe

crR RW EFF A Te Fee a reached after due coneudbtation samoang the memloors of the Courk of Tax Appmales dma cordance wiih

AMANTE FAALLER

Presiding dude Cou t

Tan Gpopeade