8/18/2019 Enjay Hotels v CIR

1/1

Enjay Hotels, Inc. v. Commissioner of Internal RevenueCTA Case No. 8545January 8, !"#

T$e Court $as juris%iction to rule on t$e issue of %isallo&e% rental income still

'en%in( a''eal &it$ t$e )ffice of t$e *resi%ent

Taxpayer is a BOI-registered enterprise enjoying Income Tax Holiday (ITH) benefit

pursuant to its BOI Certificate of Registration T!e BOI appro"ed taxpayer#s application

for ITH$ %!ic! co"ers its income tax exemption in its &'' ITR Ho%e"er$ BOI

disallo%ed taxpayer#s rental income !olding t!at it did not arise from taxpayer#s

registered acti"ity BIR assessed t!e taxpayer for deficiency income tax %!ic! included

tax on said disallo%ed income Taxpayer appealed BOI#s decision %it! t!e Office of t!e

resident

On t!e *uestion of %!et!er t!e Court !as jurisdiction to rule on t!e issue of disallo%edrental income pending appeal %it! t!e Office of t!e resident$ t!e Court$ citing +ections

, and && of t!e IRC and +ections . and // of R0 o //&1$ as amended$ !eld t!at it

!as exclusi"e appellate jurisdiction to re"ie% by appeal t!e decision of respondent

in"ol"ing$ inter alia$ disputed assessments

In addition$ t!e case may proceed independently of t!e appeal of t!e subject BOI

decision T!is must be so because %!ile t!e subject assessment and t!e assailed

2330 %ere influenced by t!e BOl4s treatment or decision as regards t!e disallo%ed

rental income$ t!at does not c!ange t!e fact t!at t!e said 2330$ %!ic! is one decided

by respondent as t!e Commissioner of Internal Re"enue by "irtue of !er po%er todecide disputed assessments under +ection , of t!e IRC of /55.$ is still t!e subject

matter of t!is appeal$ to %!ic! t!is Court !as exclusi"e appellate jurisdiction under t!e

aforecited la%s