Case Digest (G.R. No. 171251)
Facts:
Lascona Land Co., Inc. v. Commissioner of Internal Revenue, G.R. No. 171251, March 05, 2012, Supreme Court Third Division, Peralta, J., writing for the Court.Petitioner Lascona Land Co., Inc. received Assessment Notice No. 0000047-93-407 dated March 27, 1998 for alleged deficiency income tax for 1993 in the amount of P753,266.56. Lascona filed a letter protest on April 20, 1998. On March 3, 1999, Norberto R. Odulio, Officer-in-Charge, Regional Director, Bureau of Internal Revenue (BIR), issued a letter denying the protest on the ground that the case was not elevated to the Court of Tax Appeals (CTA) as mandated by the last paragraph of Section 228 of the National Internal Revenue Code (NIRC), and therefore the assessment had become final, executory and demandable.
Lascona appealed to the Court of Tax Appeals on April 12, 1999 (C.T.A. Case No. 5777). On January 4, 2000, the CTA annulled the assessment, holding that where the Commissioner fails to act within the 180-day period under Section 228, the taxpayer has two options: (1) appeal to the CTA within 30 days from lapse of the 180-day period, or (2) await the Commissioner’s final decision and appeal within 30 days from receipt of that decision. The CTA denied the Commissioner’s motion for reconsideration on March 3, 2000.
The Commissioner of Internal Revenue (CIR) appealed to the Court of Appeals, which on October 25, 2005 set aside the CTA Decision and Resolution and declared the assessment final, executory and demandable. The CA denied Lascona’s motion for reconsideration by Resolution dated January 20, 2006. L...(Subscriber-Only)
Issues:
- Under Section 228 of the NIRC and the Revised Rules of the Court of Tax Appeals, does inaction by the Commissioner within the 180-day period compel a taxpayer to appeal immediately to the CTA (i.e., is appealing the inaction mandatory)?
- In the last paragraph of Section 228 of the NIRC, does the term "decision" refer to the assessment itself such that a taxpayer's failure to appeal within 30 days from the lapse of the 180-day period renders the ass...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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