Application and Enforcement of the Provisions of General Circulars Nos. 431 and 440

September 3, 1959 BIR RULING NO. 439-59 The President Philippine Institute of Accountants R-501 San Luis Terraces 640 San Luis St., Manila S i r : In reply to your letter dated August 24, 1959, please be informed as follows: The decision of the Court of Tax Appeals in the case of Connell Bros. (Philippines) vs. Collector of Internal Revenue (CTA Case No. 357) which was promulgated on April 29, 1959 did not lay down a new rule which can be given a prospective or retrospective effect. It established the rule as regards the application and enforcement of the provisions of General Circulars Nos. 431 and 440. As a matter of fact, the Court sustained the assessment in said case which covered the period for the year 1948 and the month of January, 1949. It is obvious, therefore, that said decision cannot be confined to periods subsequent to its promulgation but must necessarily be applied to past transactions, subject however to the statutory limitations on assessment. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue