Case Digest (G.R. No. L-9408)
Facts:
Emilio Y. Hilado v. The Collector of Internal Revenue and the Court of Tax Appeals, G.R. No. L-9408, October 31, 1956, Supreme Court En Banc, Bautista Angelo, J., writing for the Court.On March 31, 1952, petitioner Emilio Y. Hilado filed his 1951 income tax return with the treasurer of Bacolod City claiming, among other items, a deduction of P12,837.65 pursuant to General Circular No. V-123 issued by the Collector of Internal Revenue under rules from the Secretary of Finance. An assessment followed demanding P9,419, which Hilado paid in monthly installments, the last payment made on January 2, 1953.
On August 30, 1952, the Secretary of Finance, through the Collector, issued General Circular No. V-139, which revoked and declared void General Circular No. V-123 and announced the rule that losses of property occurring during World War II (from fire, storm, shipwreck, robbery, theft, embezzlement, or other casualty) are deductible in the year of actual loss or destruction. Relying on V-139, the Collector disallowed Hilado’s claimed deduction for 1951 and assessed a deficiency income tax of P3,546.
Hilado sought administrative reconsideration; when that was denied he filed a petition for review with the Court of Tax Appeals, which affirmed the Collector’s assessment. The present case is an appeal to the Supreme Court from the Court of Tax Appeals’ decision. The contested P12,837.65 represented a portion of a war-damage claim that the Philippine War Damage Commission, under the Philippine Rehabilitation Act of 1946, ha...(Pro-only)
Issues:
- Did petitioner acquire a vested right under General Circular No. V-123 that prevents its revocation by the Secretary of Finance?
- Was the P12,837.65 deductible from petitioner’s 1951 gross income (i.e., was it a deductible loss in 1951)?
- Were the Philippine internal revenue laws in force and thus the concept of a taxable year applicable during the period of enemy occupation, affecting the year in...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
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Doctrine:
- (Pro-only)