EN BANC

[G.R. No. L-12518. October 28, 1961.] COLLECTOR OF INTERNAL REVENUE, petitioner, vs. J.C. YUSECO and THE COURT OF TAX APPEALS, respondents. Solicitor General and Antonio H. Garces for et!t!oner. Yuseco, Abdon, Yuseco & Narvasa for re" ondent". SYLLABUS 1.CO#R$% O& $A' A((EAL%) *#R+%,+C$+ON) -R+$% O& (RO.+B+$+ON AN, +N*#NC$+ON (O-ER $O +%%#E. / No01ere doe" t1e 2a0 e3 re""24 5e"t !n t1e Co6rt of $a3 A ea2" or!7!na2 86r!"d!ct!on to !""6e 0r!t" of ro1!b!t!on and !n86nct!on !nde endent24 of, and a art fro9, an a ea2ed ca"e. $1e 0r!t of ro1!b!t!on or !n86nct!on t1at !t 9a4 !""6e 6nder t1e ro5!"!on" of %ect!on 11, Re 6b2!c Act No. 1125 to "6" end t1e co22ect!on of ta3e", !" 9ere24 anc!22ar4 to and !n f6rt1erance of !t" a e22ate 86r!"d!ct!on !n t1e ca"e 9ent!oned !n %ec. : of t1e Act. $1e o0er to !""6e t1e 0r!t e3!"t" on24 !n ca"e" a ea2ed to !t. +n ot1er 0ord" t1e !ntent!on of Con7re"" 0a" to 5e"t t1e Co6rt of $a3 A ea2" 0!t1 86r!"d!ct!on to !""6e 0r!t" of ro1!b!t!on and !n86nct!on on24 !n a!d of !t" a e22ate 86r!"d!ct!on !n ca"e" a ea2ed to !t and not to c2ot1e !t 0!t1 or!7!na2 86r!"d!ct!on to !""6e t1e9. 2.$A'A$+ON) (A;<EN$ O& $A'E% CANNO$ BE ,ELA;E,) RE<E,; O& $A'(A;ER%. / $a3e" be!n7 t1e c1!ef "o6rce of re5en6e for t1e Go5ern9ent to =ee !t r6nn!n7 96"t be a!d !99ed!ate24 and 0!t1o6t de2a4. A ta3 a4er 01o fee2" a77r!e5ed b4 t1e dec!"!on or r62!n7 1anded do0n b4 a re5en6e off!cer and a ea2" fro9 1!" dec!"!on or r62!n7 to t1e Co6rt of $a3 A ea2" 96"t a4 t1e ta3 a""e""ed e3ce t t1at, !f !n t1e o !n!on of t1e Co6rt t1e co22ect!on 0o62d 8eo ard!>e t1e !ntere"t of t1e Go5ern9ent and?or t1e ta3 a4er, !t co62d "6" end t1e co22ect!on and re@6!re" t1e ta3 a4er e!t1er to de o"!t t1e a9o6nt c2a!9ed or to f!2e a "6ret4 bond for not 9ore t1an do6b2e t1e a9o6nt of t1e ta3 a""e""ed.

DECISION

PADILLA, J A $1e Co22ector of +nterna2 Re5en6e "ee=" a re5!e0 6nder "ect!on 18, Re 6b2!c Act No. 1125, and ra4" for t1e "ett!n7 a"!de of t1e 86d79ent rendered b4 t1e Co6rt of $a3 A ea2" on 25 <arc1 195:, !n C.$.A. Ca"e No. 21:, t1e d!" o"!t!5e art of 01!c1 !", a" fo22o0"A
-.ERE&ORE, 6r"6ant to "ect!on 51 BdC of t1e Nat!ona2 +nterna2 Re5en6e Code, 86d79ent !" 1ereb4 rendered dec2ar!n7 t1e 0arrant of d!"tra!nt and 2e54 !""6ed b4 re" ondent on *an6ar4 2D, 1955 to effect co22ect!on of t1e Ea9o6nt of (2,FF:.GD a" !nco9e ta3 for t1e 4ear 19F6 26" 5H "6rc1ar7e and t1e 1H 9ont124 !ntere"t fro9 A676"t 16, 195GE a22e7ed24 d6e fro9 et!t!oner, !" 1ereb4 dec2ared n622 and 5o!d and of no 2e7a2 force and effect and re" ondent !" 1ereb4 d!rected to ret6rn to et!t!oner t1e ro ert!e" "e!>ed fro9 t1e 2atter 6nder "a!d 0arrant. $1e re" ondent Co22ector of +nterna2 Re5en6e !" 2!=e0!"e en8o!ned fro9 ta=!n7 an4 f6rt1er roceed!n7 to effect b4 "699ar4 9et1od" t1e co22ect!on of t1e a22e7ed !nco9e ta3e" a""e""ed a7a!n"t et!t!oner *. C. ;6"eco !n t1e "69" of (1GF.1F and (2,FF:.GD for t1e 4ear" 19F5 and 19F6, re" ect!5e24. -!t1o6t rono6nce9ent a" to co"t". BA end!3 NC

and t1e re"o26t!on entered b4 t1e "a9e Co6rt on 1: *6ne 195: den4!n7 1!" 9ot!on for recon"!derat!on BA end!3 (C. $1e fact", 01!c1 are not d!" 6ted, are, a" "699ar!>ed b4 t1e Co6rt, a" fo22o0"A $1e fact" e"tab2!"1ed !n t1!" ca"e "1o0 t1at et!t!oner d!d not f!2e !nco9e ta3 ret6rn" for t1e Ca2endar 4ear" 19F5 and 19F6. $1!" fact 1a5!n7 co9e to t1e =no02ed7e of re5en6e e3a9!ner", t1e4 accord!n724 9ade !nco9e ta3 ret6rn" for et!t!oner 6 on 01!c1 re" ondent on A676"t 2D, 19F8, a""e""ed a7a!n"t and de9anded fro9 et!t!oner t1e "69" of (1GF.1F and (:,56G.28 re re"ent!n7 a22e7ed !nco9e ta3e" and corre" ond!n7 "6rc1ar7e" for t1e 4ear" 19F5 and 19F6. On %e te9ber 1, 19F8, et!t!oner 0rote t1e re" ondent, re@6e"t!n7 t1at 1e be !nfor9ed a" to 1o0 t1e a""e""9ent" 0ere arr!5ed at. +n re 24 t1ereto, re" ondent !n a 2etter dated %e te9ber 1:, 19F8 f6rn!"1ed t1e !nfor9at!on "o671t and at t1e "a9e t!9e de9anded t1e a49ent of t1e afore"a!d a""e""9ent". On October F, 19F8, et!t!oner a"=ed t1at 1e be 7!5en an o ort6n!t4 to re"ent 1!" "!de of t1e 9atter. .o0e5er, re" ondent on ,ece9ber 1G, 19F8, den!ed recon"!derat!on of t1e a""e""9ent and re!terated 1!" de9and 6 on et!t!oner for a49ent t1ereof 01!c1 0a" fo22o0ed 0!t1 anot1er de9and on *6ne 29, 19F9. On *624 28, 19F9, et!t!oner once 9ore re@6e"ted for a re!n5e"t!7at!on of t1e ca"e b6t t1e "a9e 0a" den!ed b4 re" ondent !n 1!" 2etter dated &ebr6ar4 :, 1951 01ere!n 1e re eated 1!" de9and for a49ent. On A r!2 G, 1951, et!t!oner rene0ed 1!" re@6e"t for re!n5e"t!7at!on and not1!n7 0a" 1eard of t1e 9atter for a29o"t t1ree 4ear" t1ereafter.

On *an6ar4 6, 195G, re" ondent !""6ed a 0arrant of d!"tra!nt and 2e54 6 on et!t!onerI" ro ert!e" 01!c1, 1o0e5er, 0a" not e3ec6ted. On *an6ar4 16, 195G, et!t!oner "o671t t1e 0!t1dra0a2 and?or recon"!derat!on of "a!d 0arrant. <ean01!2e, on *624 2, 195G, re" ondent !""6ed a re5!"ed a""e""9ent not!ce 01!c1 red6ced t1e or!7!na2 a""e""9ent for t1e 19F6 !nco9e ta3 to (2,FF:.GD, !nc26d!n7 "6rc1ar7e. On *624 18, 195G, et!t!oner a"=ed t1at 1e be !nfor9ed of t1e act!on 6 on 1!" et!t!on for re!n5e"t!7at!on. $1!" re@6e"t 0a" re!terated !n 1!" 2etter of A676"t 18, 195G 01ere!n 1e ac=no02ed7ed rece! t of t1e 9od!f!ed a""e""9ent for t1e 19F6 !nco9e ta3. On %e te9ber 1, 195G, re" ondent 0rote et!t!oner de9and!n7 fro9 t1e 2atter a49ent of t1e "a!d "69 of (2,FF:.GD a" !nco9e ta3 for t1e 4ear 19F6 26" ena2t!e" !nc!dent to de2!n@6enc4, and re!terat!n7 t1e de9and for t1e 6nre5!"ed !nco9e ta3 a""e""9ent for 19F5 !n t1e "69 of (1GF.1F, b6t re" ondent d!d not ta=e an4 f6rt1er act!on t1ereafter to effect co22ect!on of t1e a""e""9ent. On *an6ar4 2D, 1955, re" ondent a7a!n !""6ed a 0arrant of d!"tra!nt and 2e54 on t1e ro ert!e" of et!t!oner, t1!" t!9e on24 to effect co22ect!on of t1e "a!d "69 of (2,FF:.GD a" !nco9e ta3 for 19F6. $1e d!"tra!nt be!n7 "t!22 enforce, et!t!oner on ,ece9ber 12, 1955 f!2ed 1!" et!t!on for ro1!b!t!on 0!t1 t1!" Co6rt. $1e et!t!oner Co22ector of +nterna2 Re5en6e a""a!2" t1e 86r!"d!ct!on of t1e re" ondent Co6rt of $a3 A ea2" to ta=e co7n!>ance of t1e re" ondent ta3 a4erI" et!t!on t1at "ee=" to en8o!n 1!9 Bt1e et!t!onerC fro9 co22ect!n7 1!" !nco9e ta3e" d6e for t1e 4ear" 19F5 and 19F6 and "6rc1ar7e" b4 "699ar4 d!"tra!nt of and 2e54 6 on 1!" er"ona2 and rea2 ro ert!e", 6nder t1e ro5!"!on" of "ect!on" G16 to GGD of t1e Nat!ona2 +nterna2 Re5en6e Code. $1e et!t!onerI" content!on !" t1at t1e re" ondent ta3 a4er cannot br!n7 !n t1e re" ondent Co6rt an !nde endent " ec!a2 c!5!2 act!on for ro1!b!t!on 0!t1o6t ta=!n7 to "a!d Co6rt an a ea2 fro9 t1e dec!"!on or r62!n7 of t1e Co22ector of +nterna2 Re5en6e !n t1e ca"e" ro5!ded for !n "ect!on" : and 11 of Re 6b2!c Act No. 1125. %ect!on" :, 9 and 11 of Re 6b2!c Act No. 1125, creat!n7 t1e Co6rt of $a3 A ro5!deA
%EC. :.Jurisdiction. / The Court of Tax Appeals shall exercise exclusive appellate jurisdiction to revie b! appeal, a" 1ere!n ro5!ded / B1C,ec!"!on" of t1e Co22ector of +nterna2 Re5en6e !n ca"e" !n5o25!n7 d!" 6ted a""e""9ent", ref6nd" of !nterna2 re5en6e ta3e", fee" or ot1er c1ar7e", ena2t!e" !9 o"ed !n re2at!on t1ereto, or ot1er 9atter" ar!"!n7 6nder t1e Nat!ona2 +nterna2 Re5en6e Code or ot1er 2a0 or art of 2a0 ad9!n!"tered b4 t1e B6rea6 of +nterna2 Re5en6e) B2C,ec!"!on" of t1e Co99!""!oner of C6"to9" !n ca"e" !n5o25!n7 2!ab!2!t4 for c6"to9" d6t!e", fee" or ot1er 9one4 c1ar7e") "e!>6re, detent!on or re2ea"e of ro ert4 affected) f!ne", forfe!t6re" or ot1er ena2t!e" !9 o"ed !n re2at!on

ea2",

t1ereto) or ot1er 9atter" ar!"!n7 6nder t1e C6"to9" La0 or ot1er 2a0 or art of 2a0 ad9!n!"tered b4 t1e B6rea6 of C6"to9") and BGC,ec!"!on" of ro5!nc!a2 or c!t4 Board" of A""e""9ent A ea2" !n ca"e" !n5o25!n7 t1e a""e""9ent and ta3at!on of rea2 ro ert4 or ot1er 9atter" ar!"!n7 6nder t1e A""e""9ent La0, !nc26d!n7 r62e" and re762at!on" re2at!5e t1ereto. %EC. 9."ees. / The Court shall fix reasonable fees for the filin# of an appeal, for cert!f!ed co !e" of an4 tran"cr! t of record, entr4 or ot1er doc69ent, and for ot1er a6t1or!>ed "er5!ce" rendered b4 t1e Co6rt or !t" er"onne2. %EC. 11.$ho %a! appeal& effect of appeal. / An4 er"on, a""oc!at!on or cor orat!on ad5er"e24 affected b4 a dec!"!on or r62!n7 of t1e Co22ector of +nterna2 Re5en6e, t1e Co22ector of C6"to9" or an4 ro5!nc!a2 or c!t4 Board of A""e""9ent A ea2" %a! file an appeal in the Court of Tax Appeals 0!t1!n t1!rt4 da4" after t1e rece! t of "6c1 dec!"!on or r62!n7. No a ea2 ta=en to t1e Co6rt of $a3 A ea2" fro9 t1e dec!"!on of t1e Co22ector of +nterna2 Re5en6e or t1e Co22ector of C6"to9" "1a22 "6" end t1e a49ent, 2e54, d!"tra!nt, and?or "a2e of an4 ro ert4 of t1e ta3 a4er for t1e "at!"fact!on of 1!" ta3 2!ab!2!t4 a" ro5!ded b4 e3!"t!n7 2a0) 'rovided, ho ever, $1at 01en !n t1e o !n!on of t1e Co6rt t1e co22ect!on b4 t1e B6rea6 of +nterna2 Re5en6e or t1e Co99!""!oner of C6"to9" 9a4 8eo ard!>e t1e !ntere"t of t1e Go5ern9ent and?or t1e ta3 a4er t1e Co6rt at an4 "ta7e of t1e roceed!n7 9a4 "6" end t1e "a!d co22ect!on and re@6!re t1e ta3 a4er e!t1er to de o"!t t1e a9o6nt c2a!9ed or to f!2e a "6ret4 bond for not 9ore t1an do6b2e t1e a9o6nt 0!t1 t1e Co6rt. BE9 1a"!" "6 2!ed.C

$1e fore7o!n7 ro5!"!on" of t1e 2a0 refer and 2!9!t on24 to a ea2" fro9 dec!"!on" or r62!n7" of t1e Co22ector of +nterna2 Re5en6e, Co99!""!oner of C6"to9" and (ro5!nc!a2 or C!t4 Board" of A""e""9ent A ea2" !n t1e ro er ca"e". No01ere doe" t1e 2a0 e3 re""24 5e"t !n t1e Co6rt of $a3 A ea2" or!7!na2 86r!"d!ct!on to !""6e 0r!t" of ro1!b!t!on and !n86nct!on !nde endent24 of, and a art fro9, an a ea2ed ca"e. $1e 0r!t of ro1!b!t!on or !n86nct!on t1at !t 9a4 !""6e 6nder t1e ro5!"!on" of "ect!on 11, Re 6b2!c Act No. 1125, to "6" end t1e co22ect!on of ta3e", !" 9ere24 anc!22ar4 to and !n f6rt1erance of !t" a e22ate 86r!"d!ct!on !n t1e ca"e" 9ent!oned !n "ect!on : of t1e Act. $1e o0er to !""6e t1e 0r!t e3!"t" on24 !n ca"e" a ea2ed to !t. $1!" !" ref2ected on t1e e3 2anator4 note of t1e b!22 B.o6"e No. 1:5C, creat!n7 t1e Co6rt of $a3 A ea2". -e @6ote fro9 t1e e3 2anator4 noteA

. . . +t !" ro o"ed !n t1e attac1ed b!22 to e"tab2!"1 not 9ere24 an ad9!n!"trat!5e bod4 b6t a re#ular court vested ith exclusive appellate jurisdiction o5er ca"e" ar!"!n7 6nder t1e Nat!ona2 +nterna2 Re5en6e Code, C6"to9" La0 and t1e

A""e""9ent La0. BE9 1a"!" "6 Con7re"", Jo2. +, (art ++.C

2!ed. . 22D2, Con7re""!ona2 Record, $1!rd

Con7re""9an Ca"taKeda, one of t1e ro onent" of t1e b!22, !n 1!" o en!n7 re9ar=" " on"or!n7 !t" enact9ent !nto 2a0, "a!d t1at E.o6"e B!22 No. 1:5 1a" for !t" 6r o"e t1e creat!on of a re762ar co6rt of ta3 a ea2".E B . 22DF, supra.C An"0er!n7 a @6e"t!on fro9 Con7re""9an A2on>o 01et1er t1e Co6rt of $a3 A ea2" 0o62d 1a5e on24 a e22ate 86r!"d!ct!on and no conc6rrent or or!7!na2 86r!"d!ct!on, t1e ro onent "a!d t1at E+t 1a" e3c26"!5e 86r!"d!ct!on 0!t1 reference to 9atter" or ca"e" ar!"!n7 fro9 t1e +nterna2 Re5en6e Code, t1e C6"to9" La0 and t1e A""e""9ent La0.E B . 22D9-221D, supraC. ,0e22!n7 f6rt1er on t1e "6b8ect, t1e t0o 9e9ber" of t1e .o6"e of Re re"entat!5e" / cont!n6ed t1e!r d!"c6""!on, a" fo22o0"A
<r. A2on>o. %o t1at 6nder t1!" ro o"a2 4o6 0!22 br!n7 t1e ca"e !99ed!ate24 to t1!" co6rt t1at 4o6 are ro o"!n7 to create, 0!t1o6t f!r"t 1a5!n7 !t dec!ded b4 t1e Co99!""!oner of C6"to9" or t1e Co22ector of +nterna2 Re5en6e, a" t1e ca"e 9a4 be. <r. Ca"taKeda. +t 0!22 1a5e to be a ea2ed fro9 t1e dec!"!on of t1e Co22ector of +nterna2 Re5en6e, t1e Co22ector of C6"to9" or t1e A""e""or", to t1e Co6rt of $a3 A ea2", t1en to t1e %6 re9e Co6rt. B . 22D9-221D, supra.C

$1e"e "tate9ent" 9ade d6r!n7 t1e roceed!n7" !nd!cate t1at t1e !ntent!on of Con7re"" 0a" to 5e"t t1e Co6rt of $a3 A ea2" 0!t1 86r!"d!ct!on to !""6e 0r!t" of ro1!b!t!on and !n86nct!on on24 !n a!d of !t" a e22ate 86r!"d!ct!on !n ca"e" a ea2ed to !t and not to c2ot1e !t 0!t1 or!7!na2 86r!"d!ct!on to !""6e t1e9. %6c1 !ntent !" ref2ected on t1e "econd ara7ra 1 of "ect!on 11, Re 6b2!c Act No. 1125 @6oted abo5e. $a3e" be!n7 t1e c1!ef "o6rce of re5en6e for t1e Go5ern9ent to =ee !t r6nn!n7 96"t be a!d !99ed!ate24 and 0!t1o6t de2a4. A ta3 a4er 01o fee2" a77r!e5ed b4 t1e dec!"!on or r62!n7 1anded do0n b4 a re5en6e off!cer and a ea2" fro9 1!" dec!"!on or r62!n7 to t1e Co6rt of $a3 A ea2" 96"t a4 t1e ta3 a""e""ed, e3ce t t1at, !f !n t1e o !n!on of t1e Co6rt t1e co22ect!on 0o62d 8eo ard!>e t1e !ntere"t of t1e Go5ern9ent and?or t1e ta3 a4er, !t co62d "6" end t1e co22ect!on and re@6!re t1e ta3 a4er e!t1er to de o"!t t1e a9o6nt c2a!9ed or to f!2e a "6ret4 bond for not 9ore t1an do6b2e t1e a9o6nt of t1e ta3 a""e""ed. $1e 86d79ent 6nder re5!e0 !" ann622ed and "et a"!de, 0!t1o6t rono6nce9ent a" to co"t". (en#)on, C . J ., (autista An#elo, *abrador, Concepcion, +e!es, J.(.*., 'aredes, ,i)on and ,e *eon, JJ ., conc6r. (arrera, J ., too= no art.