Commissioner of Internal Revenue vs Lascona Land CA G.R. SP No. 58061

FACTS: On March 27, 1998, the CIR issued assessment notice against Lascona Land Co., Inc. informing the latter of its alleged deficiency income tax for the year 1993 in the amount of P753,266.56. As a consequence, respondent filed a letter protest on April 20, 1998 which was denied by Regional Director of BIR Makati. Aggrieved, respondent appealed the said decision to the CTA on April 12, 1999 alleging that the Regional Director erred in ruling that the disputed assessment had already become final, executory and demandable contrary to the mandate of Section 228 of the National Internal Revenue Code of 1997. The CTA rendered the assailed Decision dated January 4, 2000 nullifying the subject assessment.

ISSUE: Whether or not the assessment made by the CIR has already become final and executor

RULING: Yes. Ruling in favor of petitioner. Pursuant to Section 228 of the National Internal Revenue Code (NIRC) of 1997, if the protest was not acted upon within a period of 180 days from the submission of documents, such inaction allows the taxpayer to appeal to the Court of Tax Appeals (CTA). If there is no appeal within 30 days after the lapse of the 180-day period, the matter/decision under protest becomes final. On the other hand, any decision on a protest is appealable.

In the case at bar, it is undisputed that respondent filed its protest on April 20, 1998 and must have submitted its supporting documents within 60 days therefrom or until June 19, 1998. Thereafter, the petitioner has 180 days or until December 16, 1998 within which to act on the subject protest. In turn, respondent has another 30 days reckoned from its actual receipt of the latter’s decision, if any, or the lapse of the 180-day period counted from December 17, 1998 or until January 16, 1999, whichever comes first, to elevate its appeal to the CTA. However, records show that respondent appealed to the said court only on April 12, 1999, after almost three (3) months from the lapse of the 180-day period. As such, its appeal was clearly filed out of time rendering the disputed assessment final and demandable.