Belle Corporation v. CIR

Belle Corporation v. CIR G.R. No. 181298 January 10, 2011

FACTS: Petitioner Belle, a domestic corporation engaged in the real estate and property business, filed with the BI its income ta! return "IT# for the first $uarter of %&&'( Subse$uently, Subse$uently, it filed with the BI its second $uarter IT, declaring an o)erpayment of ta!es( In )iew of the o)erpayment, no ta!es were paid for the second and third $uarters of %&&'( Instead of claiming the amount as a ta! refund, petitioner decided to apply it as a ta! credit to the succeeding ta!able year by mar*ing the ta! credit option bo! in its %&&' IT( +n April %, --, --, petitioner filed with the BI an administrati)e claim for refund its unutili.ed e!cess income ta! payments for the ta!able year %&&'( /otwithstanding the filing of the administrati)e claim for refund, petitioner carried o)er the e!cess amount to the ta!able year %&&&( 0ue to the inaction of the respondent CI and in order to toll the running of the two1year prescripti)e period, petitioner appealed its claim for refund of unutili.ed e!cess income ta! payments for the ta!able year %&&' )ia petition for re)iew( The CTA denied the petition( ISS23: 4hether petitioner is entitled to a refund of its e!cess income ta! payments for the ta!able year %&&' 25I/6: /o( In case the corporation is entitled to a refund of the e!cess estimated $uarterly income ta!es paid, the refundable amount shown on its final ad7ustment return may be credited against the $uarterly income ta! liabilities for the ta!able $uarters of the succeeding ta!able years( +nce the option to carry o)er and apply the e!cess $uarterly income ta! against income ta! due for the ta!able $uarters of the succeeding ta!able years years has been been made, made, such such option option shall be consid considere eredd irre)o irre)ocab cable le for that that ta!abl ta!ablee perio periodd and and no application for ta! refund or issuance of ta! credit certificate shall be allowed therefor( 2nder Section '8 of the /IC, in case of o)erpayment of income ta!es, the remedies are still the same9 and the a)ailment of one remedy still precludes the other( The carry1o)er of e!cess income ta! payments is no longer limited to the succeeding ta!able year( 2nutili.ed e!cess income ta! payments may now be accrued o)er to the succeeding ta!able years until fully reali.ed( In this case, since the petitioner carried o)er its %&&' e!cess income ta! payments to the succeeding ta!able ta!able year %&&, it may no longer file a claim for refund of unutili.ed unutili.ed ta! credits credits for ta!able ta!able year %&&'( +nce the option to carry o)er e!cess income ta! payments to the succeeding years has been made, it becomes irre)ocable( Thus, applications for refund of the unutili.ed e!cess income ta! payments may no longer be allowed(