Philippine Supreme Court Jurisprudence


Philippine Supreme Court Jurisprudence > Year 1961 > December 1961 Decisions > G.R. No. L-15013 December 28, 1961 - COMMISSIONER OF INTERNAL REVENUE v. ASTURIAS SUGAR CENTRAL, INC. :




PHILIPPINE SUPREME COURT DECISIONS

EN BANC

[G.R. No. L-15013. December 28, 1961.]

COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. ASTURIAS SUGAR CENTRAL, INC., Respondent.

Solicitor General for Petitioner.

Pelaez & Jalandoni and Felipe Ysmael for Respondent.


D E C I S I O N


CONCEPCION, J.:


Petitioner herein seeks a reconsideration of our decision in this case insofar as it affirms the award, made in the decision of the Court of Tax Appeals, of interest on the tax payments refundable to respondents herein.

The motion is predicated upon the theory that the precedent established in Carcar Electric and Ice Plant Co., Inc. v. Court of Tax Appeals (53 Off Gaz., 1068, 1071, 1073-1075), has been superseded by the decision in Court of Tax Appeals v. St. Paul’s Hospital of Iloilo (G.R. No. L-12127, May 25, 1959). This issue has already been decided in the negative in a resolution, dated September 26, 1961, denying a motion for reconsideration of Collector of Internal Revenue v. Antonio Prieto, L-11976. We quote from said resolution:jgc:chanrobles.com.ph

". . . we held in Carcar Electric & Ice Plant Co., Inc. v. Collector of Internal Revenue (G.R. No. L-9257, Oct. 17, 1956, 53 O.G. No. 4, 1068) that ‘under the present Internal Revenue Code the Collector of Internal Revenue may be made to answer for interest at the legal rate on taxes improperly collected. Such liability serves as additional safeguard in favor of the taxpayer against arbitrariness in the exaction or collection of taxes and imposts.’ (See Resolution on the Motion for the Reconsideration filed by the Collector of Internal Revenue, 53 O.G. No. 4, pp. 1071-1075).

"In reasoning our Resolution in the Carcar case we said that ‘Under the Internal Revenue Act of 1914, the Collector of Internal Revenue was liable for interest on taxes improperly collected as held in Hongkong Shanghai Bank v. Rafferty, 39 Phil. 153; Heacock Co. v. Collector of Customs, 37 Phil. 970; Vda. e Hijos de P. Roxas v. Rafferty, 37 Phil. 957’; that, subsequently, Section 1579 of the Administrative Code of 1917 expressly authorized suits against the Collector of Internal Revenue ‘for the recovery without interest of the sum alleged to have been illegally collected’; that for this reason, thereafter, no judgments for interest were rendered against the Collector; that in 1939, the National Internal Revenue Code, in its section 306, authorized recovery of taxes erroneously or illegally collected, but omitting the expression ‘without interest’ employed in the aforesaid section of the Administrative Code of 1917, which it superseded; that considering our repeated rulings holding the Collector of Internal Revenue liable for interest on taxes improperly collected, in the absence of express exemption, it was clear that the Legislature’s failure to reenact the words ‘without interest’ of the Administrative Code of 1917 showed a clear desire to return to the rule in force before said year.

"Our decision in the Carcar case, however, must be understood as holding the Collector of Internal Revenue liable for interest on taxes improperly collected only if the collection was attended with ‘arbitrariness’. The facts involved in the case relied upon by petitioner — the St. Paul’s Hospital of Iloilo case — do not seem to justify the conclusion that arbitrariness attended or characterized the collection of the taxes in question therein."cralaw virtua1aw library

In the case at bar, we find that petitioner had acted arbitrarily in rejecting respondent’s claim, to the effect that the destruction of the Asturias Sugar Central in April 1942, in furtherance of our resistance to enemy attack, is compensable by the War Damage Corporation under the provisions of Section 5(g) of Public Laws 506 of the 77th Congress of the United States, otherwise known as the War Damage Commission Act, and that the amount of the loss thus sustained by said respondent could be determined only in 1950, when it received from the Philippine War Damage Commission a communication stating that the check enclosed therewith would be the last payment by way of partial compensation for the loss of said Sugar Central. In other words, the assessment complained of is clearly unjustified, and, accordingly, the case at bar falls within the purview, not of the case of St. Paul’s Hospital of Iloilo, but of the Carcar case.

WHEREFORE, petitioner’s motion for reconsideration is hereby denied.

Bengzon, C.J., Padilla, Bautista Angelo, Labrador, Reyes, J.B.L., Barrera, Paredes, Dizon and De Leon, JJ., concur.




Back to Home | Back to Main




















chanrobles.com





ChanRobles On-Line Bar Review

ChanRobles Internet Bar Review : www.chanroblesbar.com

ChanRobles MCLE On-line

ChanRobles Lawnet Inc. - ChanRobles MCLE On-line : www.chanroblesmcleonline.com






December-1961 Jurisprudence                 

  • G.R. No. L-15264 December 22, 1961 - GARCIA SAMSON v. RAMON ENRIQUEZ, ET AL

  • G.R. No. L-15763 December 22, 1961 - NATIONAL POWER CORP. v. HON. JESUS DE VEYRA, ET AL

  • G.R. No. L-16806 December 22, 1961 - SERGIO DEL ROSARIO v. PEOPLE OF THE PHIL.

  • G.R. No. L-16825 December 22, 1961 - IN RE: CHUA PUN v. REPUBLIC OF THE PHIL.

  • G.R. No. L-16950 December 22, 1961 - SIMEON T. GARCIA v. ARTURO B. PASCUAL

  • G.R. No. L-18054 December 22, 1961 - CITY OF BUTUAN v. HON. JUDGE MONTANO A. ORTIZ, ET AL

  • G.R. No. L-19168 December 22, 1961 - ANSBERTO P. PAREDES v. ROSALIND B. ANTILLON

  • G.R. No. L-16173 December 23, 1961 - PASCUALA R. VITO v. HON. ARSENIO H. LACSON, ETC., ET AL.

  • G.R. No. L-16992 December 23, 1961 - ATLANTIC GULF & PACIFIC CO. OF MLA., INC. v. COURT OF INDUSTRIAL RELATIONS, ET AL

  • G.R. No. L-8748 December 26, 1961 - ISABEL B. VDA. DE PADILLA v. CONCEPCION PATERNO

  • G.R. No. L-15365 December 26, 1961 - ASUNCION FRANCISCO, ET AL v. HON. HERMOGENES CALUAG, ET AL

  • G.R. No. L-18128 December 26, 1961 - J. M. TUASON & CO., INC., ET AL v. COURT OF APPEALS, ET AL

  • G.R. No. L-16600 December 27, 1961 - ILOILO CHINESE COMMERCIAL SCHOOL v. LEONORA FABRIGAR, ET AL

  • G.R. No. L-12996 December 28, 1961 - REPUBLIC OF THE PHIL. v. ANTONIO ALBERT

  • G.R. No. L-14337 December 28, 1961 - AGAPITO TRIA, ET AL v. PEDRO ZABALLA, ET AL

  • G.R. No. L-14823 December 28, 1961 - ANACLETA BARILLO v. REPUBLIC OF THE PHIL.

  • G.R. No. L-15013 December 28, 1961 - COMMISSIONER OF INTERNAL REVENUE v. ASTURIAS SUGAR CENTRAL, INC.

  • G.R. No. L-15091 December 28, 1961 - GENOVEVA CATALAN PAULINO, ET AL v. PAZ H. PAULINO, ET AL

  • G.R. No. L-15798 December 28, 1961 - JOSE P. TECSON v. SOCIAL SECURITY SYSTEM

  • G.R. No. L-16359 December 28, 1961 - INSULAR LIFE ASSURANCE CO., LTD. v. SSS

  • G.R. No. L-16563 December 28, 1961 - Z. E. LOTHO, INC. v. ICE & COLD STORAGE INDUSTRIES OF THE PHIL., INC., ET AL

  • G.R. No. L-17066 December 28, 1961 - IN RE: CARMEN PADILLA VDA. DE BENGSON v. PHIL. NAT’L., BANK

  • G.R. No. L-17135 December 28, 1961 - MANILA CORDAGE CO. v. HON. MAGNO GATMAITAN, ETC., ET AL

  • G.R. No. L-17196 December 28, 1961 - TEODORICO B. SANTOS v. COURT OF INDUSTRIAL RELATIONS, ET AL.

  • G.R. No. L-17237 December 28, 1961 - GREGORIA BARTOLO v. PRIMO G. MALIWANAG, ET AL

  • G.R. No. L-17535 December 28, 1961 - H. G. HENARES & SONS v. NATIONAL LABOR UNION

  • G.R. No. L-17661 December 28, 1961 - MANUEL TIBERIO v. MANILA PILOTS ASSO.

  • G.R. No. L-17687 December 28, 1961 - JANUARIO L. JISON, SR. v. IGNACIO DEBUQUE, ET AL

  • G.R. No. L-17690 December 28, 1961 - MANUEL DIVINAGRACIA v. COURT OF FIRST INSTANCE OF MLA., ET AL

  • G.R. No. L-17934 December 28, 1961 - ALLIED FREE WORKERS’ UNION v. HON. JUDGE MANUEL ESTIPONA, ETC., ET AL.

  • G.R. No. L-17937 December 28, 1961 - COMMUNITY SAWMILL CO. v. WORKMEN’S COMPENSATION COM., ET AL

  • G.R. No. L-13254 December 30, 1961 - CALIFORNIA LINES INC. v. AMPARO DE LOS SANTOS, ET AL.

  • G.R. No. L-13415 December 30, 1961 - PEOPLE OF THE PHIL. v. DOROTEO BOLLENA, ET AL

  • G.R. No. L-14814 December 30, 1961 - EARNSHAWS DOCKS & HONOLULU IRON WORKS v. PEDRO GIMENEZ

  • G.R. No. 1-14999 December 30, 1961 - NARIC WORKERS’ UNION v. COURT OF INDUSTRIAL RELATIONS, ET AL

  • G.R. No. L-15436 December 30, 1961 - EUSEBIO G. DIMAANO v. AUDITOR GENERAL, ET AL

  • G.R. No. L-15759 December 30, 1961 - PAMPANGA BUS COMPANY, INC., ET AL v. MUNICIPALITY OF TARLAC

  • G.R. No. L-15812 December 30, 1961 - PEOPLE OF THE PHIL. v. PEDRO RACCA, ET AL

  • G.R. No. L-15901 December 30, 1961 - ALIPIO GONZALES v. Hon. SERGIO OSMEÑA, JR., ET AL

  • G.R. No. L-16106 December 30, 1961 - REPUBLIC OF THE PHIL. v. PNB, ET AL

  • G.R. No. L-16124 December 30, 1961 - ESPERANZA FERNANDEZ v. HON. HERMOGENES CALUAG, ET AL

  • G.R. No. L-16381 December 30, 1961 - PEOPLE OF THE PHIL. v. ANTONIO FAUSTO Y TOMAS

  • G.R. No. L-16486 December 30, 1961 - SHIU SHUN MAN v. EMILIO L. GALANG

  • G.R. No. L-16746 December 30, 1961 - REXWELL CORP. v. DOMINADOR P. CANLAS

  • G.R. No. L-16988 December 30, 1961 - PEOPLE OF THE PHIL. v. LUCIO RADA, ET AL.

  • G.R. No. L-17061 December 30, 1961 - LUNETA MOTOR COMPANY v. ANGEL DIMAGIBA, ET AL.

  • G.R. No. L-17068 December 30, 1961 - NATIONAL SHIPYARDS AND STEEL CORP. v. COURT OF INDUSTRIAL RELATIONS, ET AL.

  • G.R. No. L-17400 December 30, 1961 - EPIFANIA M. CUENCA v. SUPERINTENDENT OF THE CORRECTIONAL INSTITUTION FOR WOMEN

  • G.R. No. L-17477 December 30, 1961 - POLO FIANZA, ET AL. v. NATIONAL POWER CORPORATION, ET AL.

  • G.R. No. L-17669 December 30, 1961 - PEOPLE OF THE PHIL. v. LONGENOS PEÑAFIEL, ET AL.

  • G.R. No. L-17883 December 30, 1961 - RODOLFO B. SANTIAGO, ETC. v. AMADO DIMAYUGA, ETC.

  • G.R. No. L-18734 December 30, 1961 - GSIS EMPLOYEES ASSOC., ET AL. v. COURT OF INDUSTRIAL RELATIONS, ET AL.