Insular Life Assurance Co v. Court Of Tax Appeals

ZALDIVAR, J.:

This is an appeal from the decision of the Court of Tax Appeals, in CTA Case No. 1045, dismissing the petition for review of the presumed decision of the Commissioner of Internal Revenue who failed to act on petitioner's claim for refund of P34,667.22 representing overpayment of the income tax paid by petitioner Insular Life Assurance Co., Ltd. for the calendar year 1958. Petitioner claims that the overpayment was due to its having reported 100%, instead of only 25%, of the dividends received by it from domestic corporations liable to tax and from domestic corporations engaged in a new and necessary industry, as provided in Section 24(A) of the National Internal Revenue Code, known as the Tax Code, as amended. Petitioner, a domestic life insurance company duly organized and existing under the laws of the Philippines, filed on March 31, 1959, its income tax return for the year 1958 wherein it reported in full, or 100%, the dividends it received from corporations liable to pay income tax under Chapter III, Title II of the Tax Code and from corporations engaged in new and necessary industries.

Petitioner paid income tax amounting to P148,650.00 based on the reported net income of P2,286,926.92 for 1958, computed as follows: GROSS INCOME: (a) From premium ................................................. P - - - - - - - - (b) From rentals..................................................... 710,622.83 (c) From interest ....................................................

1,809,643.57 (d) From dividends received ................................ 759,864.15 (e) From disposition of capital assets .............. - - - - - - - - - - TOTAL GROSS INCOME ..........................

P3,280,130.55 TOTAL DEDUCTIONS ............................ 993,203.63 (f) From other sources ....................................... Net Income ...................................................