Rosa v. Revenue

VILLA-REAL, J.:

This is an appeal taken by the ex-administrator, Dr. Jose MA. de la Viña y de la Rosa, from the order of the Court of First Instance of Negros Oriental, the dispositive part of which reads: Wherefore the Court reiterates the order of March 7, 1933, only in so far as the claim of the Insular Government is concerned, and orders the Administrator herein to pay from whatever available fund of the estate of the deceased Diego de la Viña the sum of P18,420.93 with the corresponding legal interests from August 20, 1929 plus costs, to the Commonwealth of the Philippines. It is also ordered that after the said claim shall have been fully paid, the administrator herein shall pay to Dr. Jose de la Viña y De la Rosa the sum of P19,342.93 and to other claimants their respective claims in the order established by law out of the residue.

In support of his appeal the appellant assigns three alleged errors committed by the trial court in its order, to wit: 1. The trial court erred in holding that the income tax claimed by the Collector of Internal Revenue, should be paid before the administration expenses claimed by the appellant executor Dr. Jose Ma. de la Viña y de la Rosa.

2. The trial court erred in applying article 1923 of the Civil Code and in not holding that the said article has been repealed by section 735 of the Code of Civil Procedure (Act 190). 3.

Granting for the sake of argument that the payment of income tax has preference over the payment of administration expenses, the trial court erred in holding that said preference has been abandoned and lost due to the time that has elapsed from 1925 to 1938. The following are undisputed facts: On April 8, 1920, after the death of Diego de la Viña, his brother, the herein appellant Dr. Jose Ma. de la Viña, was appointed by the Court of First Instance of Negros Oriental as special administrator of the estate of the deceased; and on the 20th of the same month and year he was appointed executor.

On January 23, 1926, this Court issued in civil case G.R. No. 23747, entitled "In re estate of Diego de la Viña, deceased, Jose de la Viña v. Narcisa Geopano et al.," an order approving the accounts of the said Dr. Jose de la Viña, as outgoing administrator of the estate of Diego de la Viña. It appears from the decision of this Court rendered in said Civil Case G.R. No. 23747 that the following items were approved: Special per diems of Jose de la Viña as former adminstrator ..............................

P12,552.00 Legal Commission ............................... 4,141.33 Total ............................................................