EN BANC
[G.R. No. 61509. April 19, 1988.]
COMMISSIONER OF INTERNAL REVENUE, petitioner, vs. COURT OF TAX APPEALS and ELEVATOR SERVICE CO., INC., respondents.
NOTICE
Gentlemen:
Quoted hereunder, for your information, is a resolution of the Court En Banc dated April 19, 1988:
A petition for review on certiorari of the decision of respondent Court of Tax Appeals, in C.T.A. No. 2488, entitled "Elevator Service Company, Inc., vs. Commissioner of Internal Revenue". That decision declared without legal force and effect the assessment made by petitioner against respondent Company, the elevator Service Co. Inc., for deficiency income taxes for the years 1961, 1962 and 1963 in the respective amounts of P136,157.28, P10,562.30 and P66,827.04, inclusive of surcharge and interest, or a total of P213,546.62, on the ground that the right to assess the taxes had already expired. cd
CONSIDERING that, as found by respondent Court of Tax Appeals (C.T.A.), (1) the assessment against respondent Company for the taxable years 1961, 1962 and 1963 was made only on November 6, 1970, or, beyond the period prescribed in Section 331 of the old Tax Code, which limits the period of assessment and collection to five (5) years after a return has been made; (2) this case does not fall under any of the exceptions to the five-year prescriptive period stated in section 332 of the same Tax Code, which provides that in case of the filing of a false or fraudulent return, the tax may be assessed within (10) years after discovery of the falsity, fraud or omission; (3) it has not been established by clear and convincing evidence that the return filed by respondent company was false in view of the Tax Court's finding that the amounts received by the company were not income but financing "for the direct purchase of elevator parts for installation in the National Orthopedic Hospital, a private scheme having been entered into between respondent Company and the National Orthopedic Hospital whereby the latter, through the Social Security System, furnishes the necessary financing for the purchase and importation of the said elevators and parts to be installed in the building, and that the same were not payment to nor income of private respondent"; (4) that this is a findings of fact of the CTA, supported by substantial evidence, should not be disturbed upon review of its decision and that they are well-nigh conclusive (Nasiad vs. CTA, No. L-29318, November 29, 1974, 61 SCRA 238; Commissioner of Internal Revenue vs. P.J. Kiener Co., Ltd., No. L-24574, July 18, 1975, 65 SCRA 142); (5) that as a matter of principle it is not advisable for the Appellate Court to set aside the conclusion reached by an agency such as the Court of Tax Appeals which is, by the very nature of its function, dedicated exclusively to the study and consideration of tax problems and has necessarily developed an expertise on the subject unless there has been an abuse or improvident exercise of its authority (Reyes vs. Commissioner of Internal Revenue, Nos. L-24020-21, July 29, 1968, 24 SCRA 198.), which exception is absent herein; and finally, (6) that the finding of said Court as to the existence or non-existence of fraud is final unless clearly shown to be erroneous (Commissioner of Internal Revenue vs. Gonzales, No. L-19495, November 24, 1966, 18 SCRA 757; Commissioner of Internal Revenue vs. Ayala Securities Corporation, No. L-29485, March 31, 1976, 70 SCRA 204); the court Resolved to DENY the petition.
Very truly yours,
LUZVIMINDA D. PUNOActing Clerk of Court