City Lumber vs. Domingo and CTA

City Lumber vs. Domingo and CTA, GR. No. L-18611, January 30,1964

Petitioner seek the review of CTA decision, upholding an assessment by respondent on an additional income of P16, 678 representing minor deductions from the alleged expenses, on undisclosed sales of plywood, nails and GI sheets and on a cash credit balance.

Petitioner claim the plywood and GI sheet were lost in a fire and the credit cash balance as a loan secured by petitioner.

Issue: WON petitioner can claim deductions on his expenses/loss?

Held:

NO

The lower court rejected the alleged loss of plywood because said loss was never reported in the books of petitioner, and neither was such loss reported in the ITR of petitioner for that year. Neither were any receipt or other evidence reduced to show that said amount was a loan secured by petitioner or that loan was never secured.