Jardine Davies Inc., et al. vs. Coftftissioner of Internal Revenue

DECISION -

- 2 - lla.e of Co•pany Gang-Hail Phils., Inc. Jardine Davies, Inc.

Globe-Kackay Cable & Radio Corp.

Lincoln Philippine Life Insurance Co., Inc.

Intercontinental Gar- .ent Kanufacturing lu•ber Unit of Selling shares Price 29,000 P21.82 785,000 2.00 375,000 10.00 1,000 160.00 Corporation 6,260,000 0.04 TOTALS Cost Total I Including Selling Expenses Gain or Price of Sales) CLoss I p 632,780 p 290,362.50 p 342,417.50 1,570,000 1,517,604.50 52,395.50 3,750,000 3,750,000.00 160,000 160,125.00 (125.001 260,000 4,457,410,30 (4,197,410.301 P6,372,780 P10,175,502.30 IP3,802,722.30 Petitioner claims that the ~allowing payments were made during the same taxable year, totalling P63,723.03:

a.

Sale o~ Gang-Nail Phil., Inc., Shares <P58,483.50> Selling Price Less:

Cost Gain Tax Due:

1st PlOO,OOO. - lOY.

Excess o~ PlOO,OOO - 20Y.

T 0 T A L

P623;780.00 290,362.50 P342,417,50 PlO,OOO.OO 48,483.50 P58,483.50 b.

Sale of Jardine Davies Inc. Shares <P5,239.55> Selling Price Less:

.Cost Gain Tax Due at lOY.

539 P1,570,000.00 1,517,604.50 p 52,395.50 p 5,239.50 ' ' r I 1-.

- 3 - Both the said capital gains of ?342,417.50 and ?52,395.50 were reported in petitioner's Final Adjustment Stock Transaction Capital Gains Tax Return for the taxable year ended December 31, 1984 <See Exha. A, A-1, A-3, B, C, D, D-1, D-2, E, R, G, G-1, H, I, I-1, I-2, J, K, L, L-1, L-2, N, M-1, and N- 2. )

There being no capital gains tax liability for the year 1984, petitioner now prays for the refund of the said amount of P63, 723, 05 in the instant petition to toll the 2-year prescriptive period, the claim filed with the BIR' a Appellate Division on May 3, 1985 not having been acted upon. The aforesaid facta are not in dispute and respondent Commissioner of Internal Revenue submitted the case baaed on the evidence adduced by petitioner and the recorda of the case. The only issue is whether or not petitioner is entitled to the refund of P63, 723. 05 representing ita alleged overpaid capital gains tax for 1984. The Court finds for the petitioner. 1.

The respondent never seriously controverted petitioner's evidence entitling it to the refund.

As a matter of fact, respondent merely submit ted this case for decision on the basis of 540

- 4 - the evidence adduced by petitioner, as well as the records of the case, without presenting counter evidence or filing a memorandum. 2.

The Court likewise upholds petitioner's claim that it has no capital gains tax liability fo r 1984, as sustained by evidence, having in fact incurred · a net capital loss of P3,802,722.30.

Respondent ' s contention to the contrary is baseless and gratuitous, not having presented any proof to suppor t the same .

WHEREFORE, judg•ent is hereby rendered in favor of petitioner Jardine Davies Inc. and against respondent. and the 1atter is directed to refund to the for•er the a•ount of P63. 723. os. representing erroneously paid capita1 gains tax £or the taxab1e year ended Dece•ber 31. 1984.

ST~A DADIVAS-FARR~ES

Acting Associate Judge

I CONCUR:

~v-A=Q .. ~ ERNESTO D. ACOSTA Presiding Judge - 5 - C E R T I F I C A T I 0 N I hereby certify that this decision was reached after due consultation between the members of the Court of Tax Appeals in accordance with Section 13, Article VIII of the Constitution. 542 E.~O-~ ERNESTO D. ACOSTA Presiding Judge Court o£ Tax Appeals