FIRST DIVISION
[G.R. No. 240211. October 3, 2018.]
COMMISSIONER OF INTERNAL REVENUE, petitioner,vs. SPOUSES EDUARDO X. GENATO AND LYDIA GENATO, CONDOMINIUM PUSHERS, INC., AND LANDMART PHILIPPINES, INC., respondents.
NOTICE
Sirs/Mesdames :
Please take notice that the Court, First Division, issued a Resolution dated October 3, 2018 which reads as follows:
"G.R. No. 240211 (Commissioner of Internal Revenue v. Spouses Eduardo X Genato and Lydia Genato, Condominium Pushers, Inc., and Landmart Philippines, Inc.). — The petitioner's motion for an extension of thirty (30) days within which to file a petition for review on certiorari is GRANTED, counted from the expiration of the reglementary period.
After review, the Court resolves to DENY the petition for failure to sufficiently show that the Court of Tax Appeals (CTA) En Banc committed any reversible error in dismissing the petition for certiorari.
As correctly ruled by the CTA En Banc, the Commissioner of Internal Revenue (CIR) failed to prove bad faith on the part of Spouses Eduardo X. Genato and Lydia Genato (Spouses Genato) in executing the Affidavits of Rescission. The CTA Division likewise correctly held that rescission may be effected by both parties through mutual agreement which is the situation in this. case. 1
We also agree with the CTA in ruling that Spouses Genato's filing of a claim for refund did not amount to a request for withdrawal of the said return. As correctly ruled by the CTA Division, the sale of Spouses Genato's properties had been abrogated by virtue of the rescission of the contracts of sale. Thus, the basis for the imposition of capital gains tax failed to exist as there was no transaction to be taxed.
Lastly, we agree with the CTA En Banc that the CIR belatedly raised the issue of restitution, i.e., only in his motion for reconsideration before the Court in Division. ASEcHI
WHEREFORE, the petition is DENIED. The Decision dated January 12, 2018 and Resolution dated May 24, 2018 of the Court of Appeals in CTA EB No. 1695 are AFFIRMED.
The Office of the Solicitor General's manifestation and motion, stating that the original copy of the petition for review on certiorari dated July 24, 2018 was filed through registered mail and praying that the thereto attached copy of the petition and its annexes be made part of the record of the case, is NOTED.
SO ORDERED." Bersamin, J., on official travel.
Very truly yours,
(SGD.) LIBRADA C. BUENADivision Clerk of Court
Footnotes
1.Rollo, pp. 160-161, citing Pryce Corporation v. Philippine Amusement and Gaming Corporation, G.R. No. 157480, May 6, 2005, 458 SCRA 164.