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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
April-1939 Jurisprudence                 

  • G.R. No. 43850 April 3, 1939 - JOSE C. BUCOY v. JOHN R. MCFIE, ET AL.

    067 Phil 126

  • G.R. No. 45080 April 3, 1939 - FLORENCIA DUQUILLO v. PAZ BAYOT

    067 Phil 131

  • G.R. No. 45112 April 3, 1939 - APOLONIA GOMEZ v. LEVY HERMANOS, INC.

    067 Phil 134

  • G.R. No. 45144 April 3, 1939 - M. E. GREY v. INSULAR LUMBER COMPANY

    067 Phil 139

  • G.R. No. 45696 April 3, 1939 - PLACIDA PASCASIO, ET AL. v. BENITO GUIDO

    067 Phil 143

  • G.R. No. 45159 April 4, 1939 - GOVERNMENT OF THE PHIL. v. EMILIO MA. DE MORETA

    067 Phil 146

  • G.R. Nos. 46231-46235 April 4, 1939 - PEOPLE OF THE PHIL. v. PAULO B. GONZALEZ

    067 Phil 147

  • G.R. No. 46239 April 4, 1939 - SAN JUAN DE DIOS HOSPITAL v. ROSENDO MARCOS, ET AL.

    067 Phil 150

  • G.R. No. 46247 April 4, 1939 - SAN JUAN DE DIOS HOSPITAL v. MUNICIPAL COUNCIL OF SAN RAFAEL, ET AL.

    067 Phil 158

  • G.R. No. 45177 April 5, 1939 - JOSE MARTINEZ v. SANTOS B. PAMPOLINA

    067 Phil 167

  • G.R. No. 45193 April 6, 1939 - EMILIE ELMIRA RENEE BOUDARD, ET AL. v. STEWART EDDIE TAIT

    067 Phil 170

  • G.R. No. 46510 April 5, 1939 - ORIENT PROTECTIVE ASSURANCE ASSOCIATION v. ANTONIO RAMOS

    067 Phil 176

  • G.R. No. 45517 April 5, 1939 - TARCILA L. TRINIDAD v. ORIENT PROTECTIVE ASSURANCE ASSOCIATION

    067 Phil 181

  • G.R. No. 45738 April 6, 1939 - PEOPLE OF THE PHIL. v. MAXIMIANO CELORICO

    067 Phil 185

  • G.R. No. 45748 April 6, 1939 - PEOPLE OF THE PHIL. v. FRANCO VERA REYES

    067 Phil 187

  • G.R. No. 45955 April 5, 1939 - TEODORICA R. VIUDA DE JOSE v. JULIO VELOSO BARRUECO

    067 Phil 191

  • G.R. No. 46144 April 6, 1939 - PEOPLE OF THE PHIL. v. FRANCISCO CINCO, ET AL.

    067 Phil 196

  • G.R. No. 46409 April 5, 1939 - INSULAR MOTORS INCORPORATED v. CITY OF MANILA, ET AL.

    067 Phil 201

  • G.R. No. 46478 April 6, 1939 - PEOPLE OF THE PHIL. v. GO UG, ET AL.

    067 Phil 202

  • G.R. No. 43822 April 10, 1939 - PHILIPPINE TRUST CO. v. HONGKONG & SHANCHAI BANKING CORPORATION

    067 Phil 204

  • G.R. No. 45152 April 10, 1939 - HILARIA SIKAT v. JOHN CANSON

    067 Phil 207

  • G.R. No. 45170 April 10, 1939 - ARSENIO DE VERA, ET AL. v. CLEOTILDE GALAURAN

    067 Phil 213

  • G.R. No. 45171 April 10, 1939 - EUGENIO VERAGUTH, ET AL. v. ROSARIO MONTILLA, ET AL.

    067 Phil 215

  • G.R. No. 45192 April 10, 1939 - IN RE: VICENTE J. FRANCISCO

    067 Phil 222

  • G.R. No. 45200 April 10, 1939 - GOVERNMENT OF THE PHIL. v. APOLONIA S. ZAPANTA, ET AL.

    067 Phil 232

  • G.R. No. 45246 April 10, 1939 - CARLOS N. FRANCISCO v. PARSONS HARDWARE CO.

    067 Phil 234

  • G.R. No. 45273 April 10, 1939 - LUNETA MOTOR CO. v. FEDERICO ABAD

    067 Phil 236

  • G.R. No. 45295 April 10, 1939 - RUFO ARCENAS v. INOCENCIO DEL ROSARIO, ET AL.

    067 Phil 238

  • G.R. No. 45302 April 10, 1939 - GERVASIA ENCARNACION, ET AL. v. PROVINCIAL SHERIFF OF RIZAL, ET AL.

    067 Phil 245

  • G.R. No. 45337 April 10, 1939 - MANILA MOTOR CO. v. ANICETO MARAÑA

    067 Phil 247

  • G.R. No. 45381 April 10, 1939 - FELIX BENEDICTO v. PERFECTO ESPINO

    067 Phil 249

  • G.R. No. 45898 April 10, 1939 - JOVITA JOVEN v. MARCELO T. BONCAN, ET AL.

    067 Phil 252

  • G.R. No. 46530 April 10, 1939 - PEOPLE OF THE PHIL. v. CATALINO RABAO

    067 Phil 255

  • G.R. No. 45123 April 12, 1939 - AGRIPINO INFANTE v. MARCOS DULAY

    067 Phil 259

  • G.R. No. 45165 April 12, 1939 - GREGORIA JIMENEZ v. GEROMIMO JIMENEZ

    067 Phil 263

  • G.R. No. 45277 April 12, 1939 - TORIBIO TEODORO v. JUAN POSADAS

    067 Phil 267

  • G.R. No. 45306 April 12, 1939 - JOSUE SONCUYA v. LA URBANA

    067 Phil 271

  • G.R. No. 45365 April 12, 1939 - FULTON IRON WORKS CO. v. SIDNEY C. SCHWARZKOPF

    067 Phil 274

  • G.R. No. 45375 April 12, 1939 - COMMONWEALTH OF THE PHIL. v. GLORIA BALDELLO

    067 Phil 277

  • G.R. No. 45454 April 12, 1939 - EULALIO GARCIA v. SINFOROSA C. DAVID, ET AL.

    067 Phil 279

  • G.R. No. 45515 April 12, 1939 - TOLARAM MENGHRA v. BULCHAND ARACHAND, ET AL.

    067 Phil 286

  • G.R. No. 45742 April 12, 1939 - TIBURCIO MAMUYAC v. PEDRO ABENA

    067 Phil 289

  • G.R. No. 45752 April 12, 1939 - PEOPLE OF THE PHIL. v. JUAN PERALTA, ET AL.

    067 Phil 293

  • G.R. No. 45821 April 12, 1939 - SOCONY-VACUUM CORPORATION v. LEON C. MIRAFLORES

    067 Phil 304

  • G.R. No. 45899 April 12, 1939 - RAYMUNDO VARGAS v. NIEVES TANCIOCO,, ET AL.

    067 Phil 308

  • G.R. No. 45405 April 13, 1939 - IN RE: ANTONIO FRANCO

    067 Phil 312

  • G.R. No. 45529 April 13, 1939 - VENANCIO QUEBLAR v. LEONARDO GARDUÑO

    067 Phil 316

  • G.R. No. 46428 April 13, 1939 - PEOPLE OF THE PHIL. v. IRINEO TUMLOS

    067 Phil 320

  • G.R. No. 45253 April 14, 1939 - FIDELITY AND SURETY COMPANY OF THE PHIL. v. ISABELO G. SANCHEZ, ET AL.

    067 Phil 323

  • G.R. No. 45310 April 14, 1939 - MARCOS J. ROTEA v. FRANCISCA DELUPIO

    067 Phil 330

  • G.R. No. 45400 April 14, 1939 - MARCIANA LUNASCO v. VETERANS ADMINISTRATION

    067 Phil 333

  • G.R. No. 45536 April 14, 1939 - PEDRO AMANTE v. SERAFIN P. HILADO

    067 Phil 338

  • G.R. No. 45601 April 14, 1939 - TAVERA-LUNA v. MARIANO NABLE

    067 Phil 340

  • G.R. No. 45687 April 14, 1939 - CARIDAD ESTATE OF CAVITE, INC. v. VICENTE AVILA

    067 Phil 345

  • G.R. No. 45931 April 14, 1939 - URBANO SERRANO v. VICENTE DE LA CRUZ

    067 Phil 348

  • G.R. No. 45340 April 15, 1939 - MARCELA BALLESTEROS v. VETERANS ADMINISTRATION

    067 Phil 351

  • G.R. No. 45430 April 15, 1939 - TERESA GARCIA v. LUISA GARCIA, ET AL.

    067 Phil 353

  • G.R. No. 45643 April 16, 1939 - RAYMUNDO CORDERO v. COURT OF FIRST INSTANCE OF LAGUNA, Respondents.

    067 Phil 358

  • G.R. No. 45576 April 19, 1939 - MAXIMIANO FUENTES v. JUSTICE OF THE PEACE OF PILA, LAGUNA, ET AL.

    067 Phil 364

  • G.R. No. 45248 April 18, 1939 - VICENTE REYES VILLAVICENCIO v. SANTIAGO QUINIO

    067 Phil 367

  • G.R. No. 45418 April 18, 1939 - AMBROSIO RAMOS, ET AL. v. H. A. GIBBON, ET AL.

    067 Phil 371

  • G.R. No. 45701 April 18, 1939 - TIRSO GARCIA v. TY CAMCO SOBRINO

    067 Phil 384

  • G.R. No. 45721 April 18, 1939 - MELCHOR LAMPREA v. DIRECTOR OF LANDS, ET AL.

    067 Phil 388

  • G.R. No. 45803 April 18, 1939 - VICENTA C. VDA. DE GUIDOTE v. BANK OF THE PHILIPPINE ISLANDS

    067 Phil 391

  • G.R. No. 45923 Abril 18, 1939 - CHOA FUN v. EL SECRETARIO DEL TRABAJO

    067 Phil 394

  • G.R. No. 46015 April 18, 1939 - LIBERATO JIMENEZ v. INES DE CASTRO, ET AL.

    067 Phil 398

  • G.R. No. 46043 April 18, 1939 - TERESA LANDRITO, ET AL. v. RICARDO GONZALEZ, ET AL.

    067 Phil 401

  • G.R. No. 46134 April 18, 1939 - NICOLASA DE GUZMAN v. ANGELA LIMCOLIOC

    067 Phil 404

  • G.R. No. 46317 April 18, 1939 - JUSTO QUIMING v. MARIANO L. DE LA ROSA

    067 Phil 406

  • G.R. No. 45290 April 19, 1939 - GOVERNMENT OF THE PHIL. v. PAULA MERCADO

    067 Phil 409

  • G.R. No. 45126 April 19, 1939 - DIRECTOR OF LANDS v. ALBINO PANUNCIO

    067 Phil 414

  • G.R. No. 45166 April 19, 1939 - LEON C. VIARDO v. GALICANO GUTIERREZ

    067 Phil 416

  • G.R. No. 45190 April 19, 1939 - PEOPLE OF THE PHIL. v. ANTONIO APAREJADO, ET AL.

    067 Phil 418

  • G.R. No. 45531 April 19, 1939 - FRED OMNAS, ET AL. v. PABLO S. RIVERA

    067 Phil 419

  • G.R. No. 46002 April 19, 1939 - SALVACION RIOSA v. STILIANOPULOS, INC.

    067 Phil 422

  • G.R. No. 45715 April 20, 1939 - PEOPLE OF THE PHIL. v. REMIGIO OLIVERIA

    067 Phil 427

  • G.R. No. 45934 April 20, 1939 - FORTUNATO DIAZ v. PEOPLE OF THE PHIL.

    067 Phil 432

  • G.R. No. 45980 April 20, 1939 - MARIA MARTINEZ v. YEK TONG LIN FIRE & MARINE INSURANCE CO.

    067 Phil 436

  • G.R. No. 45493 April 21, 1939 - GERARDO GARCIA v. ANGEL SUAREZ

    067 Phil 441

  • G.R. No. 45595 April 21, 1939 - JUAN POSADAS, ET AL. v. GO HAP, ET AL.

    067 Phil 446

  • G.R. No. 46046 April 21, 1939 - PROCOPIO GAQUIT v. DOROTEO CONUI

    067 Phil 449

  • G.R. No. 46570 April 21, 1939 - JOSE D. VILLENA v. SECRETARY OF THE INTERIOR

    067 Phil 451

  • G.R. No. 45449 April 22, 1939 - TOMAS S. OCEJO v. CONSUL GENERAL OF SPAIN

    067 Phil 475

  • G.R. No. 46330 April 22, 1939 - IRENEO ABAD SANTOS, ET AL. v. PROVINCE OF TARLAC, ET AL.

    067 Phil 480

  • G.R. No. 45413 April 24, 1939 - LA YEBANA, CO., INC. v. JULIO L. VALENZUELA, ET AL.

    067 Phil 482

  • G.R. No. 45666 April 24, 1939 - ALFREDO VALENZUELA v. PEOPLE OF THE PHIL.

    067 Phil 490

  • G.R. No. 45978 April 24, 1939 - MIGUELA ELEAZAR v. EUSEBIO ELEAZAR

    067 Phil 497

  • G.R. No. 46029 April 24, 1939 - NATIONAL LOAN AND INVESTMENT BOARD v. LUIS MENESES

    067 Phil 498

  • G.R. No. 45369 April 25, 1939 - ISABELA SUGAR CO., INC. v. ALFFREDO L. YATCO

    067 Phil 500

  • G.R. No. 45544 April 25, 1939 - COLLECTOR OF INTERNAL REVENUE v. LORENZO ECHARRI

    067 Phil 502

  • G.R. No. 45624 April 25, 1939 - GEORGE LITTON v. HILL & CERON, ET AL.

    067 Phil 509

  • G.R. No. 45739 April 26, 1939 - PEOPLE OF THE PHIL. v. SOTERO PEJI BAUTISTA

    067 Phil 518

  • G.R. No. 45755 April 25, 1939 - ASUNCION ABAD v. AMANDO AQUINO

    067 Phil 526

  • G.R. No. 45964 April 26, 1939 - PEOPLE OF THE PHIL. v. RESTITURO FALLER

    067 Phil 529

  • G.R. No. 46035 April 25, 1939 - DIRECTOR OF LANDS v. PHILIPPINE NATIONAL BANK, ET AL.

    067 Phil 531

  • G.R. No. 46260 April 26, 1939 - PABLO TAMAYO v. FRANCISCO E. JOSE, ET AL.

    067 Phil 536

  • G.R. No. 46356 April 25, 1939 - FRUCTUOSA VELASCO VDA. DE TALAVERA v. CORRECTIONAL INSTITUTION FOR WOMEN

    067 Phil 538

  • G.R. No. 45403 April 26, 1939 - NATIONAL CITY BANK OF NEW YORK v. NEW YORK TONG LIN & MARINE INSURANCE COMPANY

    067 Phil 544

  • G.R. No. 45519 April 26, 1939 - RUFINA SALAO, ET AL. v. TEOFILO C. SANTOS, ET AL.

    067 Phil 547

  • G.R. No. 45521 April 26, 1939 - JOSE MORENO, ET AL. v. BONIFACIO SAN MATEO, ET AL.

    067 Phil 551

  • G.R. No. 45598 April 26, 1939 - TAN PHO v. HASSAMAL DALAMAL

    067 Phil 555

  • G.R. No. 45614 April 26, 1939 - NORBERTO FORDAN v. ANTONIO LUZON

    067 Phil 559

  • G.R. No. 45662 April 26, 1939 - ENRIQUE CLEMENTE v. DIONISIO GALVAN

    067 Phil 565

  • G.R. No. 46366 April 26, 1939 - PHILIPPINE NATIONAL BANK v. PARDO Y ROBLES HERMANOS, ET AI. .

    067 Phil 570

  • G.R. No. 46492 April 26, 1939 - RAMON SOTELO v. ARSENIO P. DIZON, ET AL.

    067 Phil 573

  • G.R. No. 45173 April 27, 1939 - RED LINE TRANSPORTATION CO., INC. v. BACHRACH MOTOR COMPANY, INC.

    067 Phil 577

  • G.R. No. 45359 April 27, 1939 - JACINTO M. DEL SAZ OROZCO, ET AL. v. SALVADOR ARANETA

    067 Phil 591

  • G.R. No. 45506 April 27, 1939 - FORTUNATO MANZANERO v. REMEDIOS BONGON

    067 Phil 595

  • G.R. No. 45508 April 27, 1939 - SEGUNDA DEVEZA v. ERIBERTO BALMEO, ET AL.

    067 Phil 603

  • G.R. No. 45534 April 27, 1939 - JOSEFA RIZAL MERCADO, ET AL. v. ALFREDO HIDALGO REAL

    067 Phil 608

  • G.R. No. 45694 April 27, 1939 - FRANCISCO YATCO v. EL HOGAR FILIPINO

    067 Phil 610

  • G.R. No. 45724 April 27, 1939 - IGNACIO DE GUZMAN, ET AL. v. TEODORO IBEA, ET AL.

    067 Phil 633

  • G.R. No. 45741 April 27, 1939 - F. Y A. GARCIA DIEGO v. GLORIA DE ANTONIO, ET AL.

    067 Phil 637

  • G.R. No. 45185 April 28, 1939 - GOVERNMENT OF THE PHIL. v. SALUD ALDEGUER VIUDA DE ROMERO SALAS

    067 Phil 643

  • G.R. No. 45464 April 28, 1939 - JOSUE SONCUYA v. CARMEN DE LUNA

    067 Phil 646

  • G.R. No. 45625 April 28, 1939 - MARGARITA VILLANUEVA v. JUAN SANTOS

    067 Phil 648

  • G.R. No. 45761 April 28, 1939 - JULIA DEL ROSARIO, ET AL. v. ANTONIO DEL ROSARIO, ET AL.

    067 Phil 652

  • G.R. No. 45266 April 29, 1939 - SIMEON RAEL v. PROVINCIAL GOVERNMENT OF RIZAL

    067 Phil 654

  • G.R. No. 45410 April 29, 1939 - MACONDRAY & CO., INC. v. JOSE BERNABE

    067 Phil 658

  • G.R. No. 45412 April 29, 1939 - COSME CARLOS, ET AL. v. COSME CARLOS

    067 Phil 662

  • G.R. No. 45425 April 29, 1939 - JOSE GATCHALIAN v. COLLECTOR OF INTERNAL REVENUE

    067 Phil 666

  • G.R. No. 45479 April 29, 1939 - FELIX ATACADOR v. HILARION SILAYAN

    067 Phil 674

  • G.R. No. 45597 April 29, 1939 - MACARIA PASCUAL v. LORENZA RAMIREZ, ET AL.

    067 Phil 678

  • G.R. No. 45965 April 29, 1939 - AMPARO GONZALEZ, ET AL. v. PRIMITIVO TRINIDAD, ET AL.

    067 Phil 682

  • G.R. No. 46003 April 29, 1939 - SIXTO DE LA COSTA, ET AL. v. BONIFACIO CLEOFAS

    067 Phil 686

  • G.R. No. 46026 April 29, 1939 - JESUSA PORTILLO-RIVERA v. STRACHAN, MACMURRAY & CO., LTD.

    067 Phil 694

  • G.R. No. 46604 April 29, 1939 - FRANCISCO MORFE, ET AL. v. JUSTICE OF THE PEACE OF CALOOCAN, ET AL.

    067 Phil 696

  •  





     
     

    G.R. No. 45544   April 25, 1939 - COLLECTOR OF INTERNAL REVENUE v. LORENZO ECHARRI<br /><br />067 Phil 502

     
    PHILIPPINE SUPREME COURT DECISIONS

    EN BANC

    [G.R. No. 45544. April 25, 1939.]

    THE COLLECTOR OF INTERNAL REVENUE, Petitioner-Appellant, v. THE ADMINISTRATRIX OF THE ESTATE OF LORENZO ECHARRI, Oppositor-Appellee.

    Undersecretary of Justice Melencio for Appellant.

    Hilado & Hilado for Appellee.

    SYLLABUS


    1. TAXES; GOVERNMENT’S CLAIM; JURISDICTION TO ORDER OR DENY PAYMENT. — Where during the pendency of judicial administration over the estate of a deceased person a claim for taxes is presented by the government, the court has the authority to order payment by the administrator; but, in the same way that it has authority to order payment or satisfaction, it also has the negative authority to deny the same.

    2. ID.; ID.; ID. — While there are cases where courts are required to perform certain duties mandatory and ministerial in character, the function of the court in a case of the present character is not one of them; and here, the court cannot be an organism endowed with latitude of judgment in one direction, and converted into a mere mechanical contrivance in another direction. This principle is sound notwithstanding the unqualified application suggested by the petitioner-appellant of section 1579 of the Revised Administrative Code in the light of the pronouncements of the court in Sarasola v. Trinidad (40 Phil., 252) and Churchill and Tait v. Rafferty (32 Phil., 580).

    3. ID.; ID.; ID.; INCOME TAX. — The other questions herein raised have reference to the nature of the transaction marked as Exhibit A of the Government. The lower court concluded that the parties intended an exchange of properties. In reality, for the purposes of the application of the Income Tax Law whether the transaction was a sale or an exchange is immaterial. The determining factor was whether any gain or profit was derived therefrom (Act No. 2833, sec. 2, subpars. [c] and [3]; Atkins’ Estate v. Lucas, 36 Fed. [2d], 611).

    4. ID.; ID.; ID., ID.; PROPER APPLICATION OF THE LAW. — Whether gain was derived from the transaction is a question of fact. The determination of that question presupposes review of the computation of the assessment made by the Collector of Internal Revenue no less than of the evidence presented by the parties. The lower court reached the conclusion that in the transaction the deceased had neither realized any gain nor suffered any loss. We cannot alter this finding made presumably after consideration of the evidence presented before the lower court especially where the court does not find any abuse or misapplication of the law.


    D E C I S I O N


    LAUREL, J.:


    This is an appeal by the Collector of Internal Revenue from the order of the Court of First Instance of Occidental Negros, under date of May 26, 1936, the dispositive part of which reads as follows:jgc:chanrobles.com.ph

    "Y bajo esta cornputacion, se declara que el Administrador de Rentas Internas solamente debe cobrar de este intestado la cantidad de P1,467.57, en lugar de la cantidad de P14,475.13. ordenandose en su consecuencia al administrador de este intestado que pague dicha suma de P1,467.59 al Gobierno de las Islas Filipinas, por conducto del Tesorero Provincial de Negros Occidental, dentro del plazo de cinco dias."cralaw virtua1aw library

    In probate proceedings in the matter of the intestate estate of Lorenzo Echarri, deceased, pending in the Court of First Instance of Occidental Negros, the provincial fiscal of said province, in behalf of the Insular Government, filed on February 18, 1931, a motion under date of February 10, of the same year, submitting therewith annex A, which is proof of debt subscribed to by the Collector of Internal Revenue on January 12, 1931, in which it is claimed, that Lorenzo Echarri, deceased, is indebted to the Government of the Philippine Islands in the sum of P14,475.13 as income tax found to be due from him for year 1927. On May 19, 1932, the Collector of Internal Revenue, represented by the provincial fiscal of said province, filed another motion in which he prayed that the administratrix of the intestate estate be ordered to pay to the Government of the Philippines the amount of the income tax above referred to. On May 28, 1932, the administratrix filed an answer to said motion in which she challenged the validity of the assessment made by the Collector of Internal Revenue and prayed that the assessment be amended and, if necessary, the claim be set for hearing for introduction of evidence. On the same date, the administratrix filed additional memorandum in which it is contended that annex B of her answer to the motion of the Collector of Internal Revenue was not a contract of sale. On January 30, 1934, the Collector of Internal Revenue, in a motion submitted to the court, raised the question of propriety of contesting the assessment or the legality of the tax without the administratrix paying first the tax under protest and bringing the corresponding action under section 1579 of the Revised Administrative Code. On June 15, 1934, the lower court upheld the contention of the Collector of Internal Revenue and ordered the administratrix to pay to the Government the sum of P14,475.13, under protest authorizing her at the same time to institute the corresponding judicial action to recover the amount paid in accordance with the aforecited section 1579 of the Revised Administrative Code. On July 7, 1934, the administratrix filed a motion for reconsideration, and on July 18, 1934, the court reconsidered its order of June 15, 1934, and set the claim of the Government for trial on the merit. Both parties presented evidence. On May 26, 1936, the lower court rendered its decision ordering the administratrix to pay to the Collector of Internal Revenue the sum of P1,467.57, instead of the P14,475.13, as additional income tax. From this order the Collector of Internal Revenue, has appealed to this court.

    The appellant makes the following assignment of errors:jgc:chanrobles.com.ph

    "I. The lower court erred in holding that it has jurisdiction to receive evidence and decide on its merit the claim of the Government filed in these proceedings.

    "II. The lower court erred in not ordering the administratrix to pay the claim of the Government under protest and bring later an action for its recovery as provided for in section 1579 of the Revised Administrative Code.

    "III. The lower court erred in holding that the transaction involved in the document, Exhibit A, which refers to the transfer of the properties known as ’Hacienda Urbasa,’ with all the improvements existing thereon, by Lorenzo Echarri to the Central Azucarera del Danao, to pay the value of 1,437 shares of stock of said central which Echarri had subscribed, does not have the nature of a sale but of an exchange or barter.

    "IV. The lower court erred in holding that, considering the nature of the transaction involved in Exhibit A as exchange, the net value that should be given to the ’Hacienda Urbasa’ is P143,700, and that the value of 1,437 shares, at the par value of P100 each, being P143,700, the result is that Lorenzo Echarri did not realize any gain subject to taxation.

    "V. The lower court erred in not holding that the transaction involved in Exhibit A partakes of the nature of a sale whereby Lorenzo Echarri sold his ’Hacienda Urbasa’ together with all the improvements thereon, with an aggregate value of P238,838.31, to the Central Azucarera del Danao, in payment of the 1,437 shares of stock subscribed by Echarri on condition that the central should assume the obligations of Echarri in the amount of P256,878.31.

    "VI. The lower court erred in not holding that the profit realized by Lorenzo Echarri from the sale of his ’Hacienda Urbasa’ to the Central Azucarera del Danao in payment of his 1,437 shares of stock amounts to P161,740, being the difference between the selling price of P400,578.31 and the cost price of ’Hacienda Urbasa’ in the amount. of P238.838.31.

    "VII. The lower court erred in ordering the administratrix to pay to the Collector of Internal Revenue the sum of P1,467.57, instead of the sum of P14,475.13 which is the amount of the income tax assessed by the Collector of Internal Revenue."cralaw virtua1aw library

    The questions raised in the first and second assignments can be fairly disposed of by taking into account the time of the discovery of the deficiency of the income-tax return, dated March 30, 1928, of Lorenzo Echarri, deceased. According to the records of this case the return was received in the office of the Collector of Internal Revenue on March 31, 1928 (Exhibit C), and that the alleged errors in said return were the subject of correspondence between the Collector of the Internal Revenue and the attorney for the administratrix of said intestate even before January 5, 1931 (Annex A). It is therefore obvious that the error or deficiency of the income-tax return was discovered within three years from the time that such erroneous declaration was made. In Collector of Customs v. Havgood (G. R. No. 44038. promulgated on May 18, 1938), we said:jgc:chanrobles.com.ph

    "1. , que cuando el descubrimiento de declaraciones erroneas de impuestos se hace dentro de los tres años siguientes a la fecha en que deben hacerse dichas declaraciones y el declarante ha fallecido, la reclamacion para el cobro delpago del impuesto tasado por el Administrador de Rentac Internas debe hacerse en la testamentaria o abintestato mediante mocion acompañada de una relacion jurada nor dicho Administrador de los impuestos adeudados y el Tribunal competente puede sumariamente ordenar al administrador judicial sin previa vista el pago de la reclamacion si este tuvierre fondos disponibles, teniendo en cuenta las prelaciones establecidas en el articulo 753 del Codigo de Procedimiento Civil, pudiendo dicho administrador hacer el pago bajo protesta para recobrar en juicio aparte lo que hubiera pagado indebidamente; y 2. , cuando el descubrimiento de declaraciones erroneas tiene lugar despues de lod tres años contados desde la fecha en que se han hecho dichas declaraciones, la reclamacion que presentare el Administrador de Rentas Internas debe hacerse tambien mediante mocion acompañada de una relacion jurada de impuesto no pagados, teniendo dicha mocion caracter de una demanda civil que debe tramitarse mediante presentacion de contestation escrita y practica de prueba."cralaw virtua1aw library

    The case of Pineda v. Court of First Instance of Tayabas and collector of Internal Revenue (52 Phil., 803), relied upon by the petitioner-appellant is good authority on the proposition that the court having control over the administration proceedings has jurisdiction to entertain the claim presented by the government for taxes due and to order the administrator to pay the tax should it find that the assessment was proper, and that the tax was legal due and collectible. And the rule laid down in that case must be understood in relation to the case of Collector of Customs v. Haygood, supra, as to the procedure to be followed in a given case by the government of effectuate the collection of the tax. Categorically stated where during the pendency of judicial administration over the estate of a deceased person a claim for taxes is presented by the government, the court has the authority to order payment by the administrator; but, in the same way that it has authority to order payment or satisfaction, it also has the negative authority to deny the same. While there are cases where courts are required to perform certain duties mandatory and ministerial in character, the function of the court in a case of the present character is not one of then; and here, the court cannot be an organism endowed with latitude of judgment in one direction, and converted into a mere mechanical contrivance in another direction. This principle is sound notwithstanding the unqualified application suggested by the petitioner-appellant of section 1579 of the Revised Administrative Code in the light of our pronouncements in Sarasola v. Trinidad (40 Phil., 252) and Churchill and Tait v. Rafferty (32 Phil., 580)

    The first and second assignments of error are therefore overruled.

    The other questions raised have reference to the nature of the transaction marked as Exhibit A of the government. The lower court concluded that the parties intended an exchange of properties. In reality, for the purposes of the application of the in one Tax Law whether the transaction was a sale or an exchange is immaterial. The determining factor was whether any gain or profit was derived therefrom (Act No. 2833, sec. 2, subpars. [c] and [:3]; Atkin.’ Estate v. Lucas, 36 Fed. [2d], 611).

    Whether gain was derived from the transaction is a question of fact. The determination of that question presupposes review of the computation of the assessment made by the Collector of Internal Revenue no less than of the evidence presented by the parties. The lower court reached the conclusion that in the transaction the deceased had neither realized any gain nor suffered any loss. We cannot alter this finding made presumably after consideration of the evidence presented before the lower court especially where we do not find any abuse or misapplication of the law.

    The appeal is dismissed without pronouncement regarding costs. So ordered.

    Avanceña, C.J., Villa-Real, Imperial, Diaz, Concepcion and Moran, JJ., concur.

    G.R. No. 45544   April 25, 1939 - COLLECTOR OF INTERNAL REVENUE v. LORENZO ECHARRI<br /><br />067 Phil 502


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