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    CIR V JAMIR

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    Shelvin Echo
    The Collector of Internal Revenue assessed Jamir with a deficiency of P16,395 in income tax for 1954, claiming he had an undeclared income of P31,274.91 based on his expenditures exceeding income that February and May. However, the Court of Tax Appeals found that expenditures should be compared to total annual income and deductions, not monthly amounts. Jamir's total annual income exceeded deductions. He provided evidence the excess expenditures represented advances from customers for subsequent transactions. Therefore, Jamir did not have undeclared income. The court also allowed Jamir a three-fourths deduction for car depreciation and driver salary as the car was used more for business than personal purposes.

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    CIR V JAMIR

    Uploaded by

    Shelvin Echo
    181 views1 page
    The Collector of Internal Revenue assessed Jamir with a deficiency of P16,395 in income tax for 1954, claiming he had an undeclared income of P31,274.91 based on his expenditures exceeding income that February and May. However, the Court of Tax Appeals found that expenditures should be compared to total annual income and deductions, not monthly amounts. Jamir's total annual income exceeded deductions. He provided evidence the excess expenditures represented advances from customers for subsequent transactions. Therefore, Jamir did not have undeclared income. The court also allowed Jamir a three-fourths deduction for car depreciation and driver salary as the car was used more for business than personal purposes.

    Original Title

    1.-CIR-v-JAMIR

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    The Collector of Internal Revenue assessed Jamir with a deficiency of P16,395 in income tax for 1954, claiming he had an undeclared income of P31,274.91 based on his expenditures exceeding income that February and May. However, the Court of Tax Appeals found that expenditures should be compared to total annual income and deductions, not monthly amounts. Jamir's total annual income exceeded deductions. He provided evidence the excess expenditures represented advances from customers for subsequent transactions. Therefore, Jamir did not have undeclared income. The court also allowed Jamir a three-fourths deduction for car depreciation and driver salary as the car was used more for business than personal purposes.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    181 views1 page

    CIR V JAMIR

    Uploaded by

    Shelvin Echo
    The Collector of Internal Revenue assessed Jamir with a deficiency of P16,395 in income tax for 1954, claiming he had an undeclared income of P31,274.91 based on his expenditures exceeding income that February and May. However, the Court of Tax Appeals found that expenditures should be compared to total annual income and deductions, not monthly amounts. Jamir's total annual income exceeded deductions. He provided evidence the excess expenditures represented advances from customers for subsequent transactions. Therefore, Jamir did not have undeclared income. The court also allowed Jamir a three-fourths deduction for car depreciation and driver salary as the car was used more for business than personal purposes.

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    COLLECTOR OF INTERNAL REVENUE vs. ALBERTO M. K.

    JAMIR

    Facts:

    In his income tax return for the year 1954, Alberto M. K. Jamir declared a gross
    income of P75,858.65 and claimed deductions aggregating P58,134.50, thereby showing
    a net income of P17,774.15, upon which he paid P1,634 as income tax. Upon examination
    of his return, as well as of his books of account and other records, Collector of Internal
    Revenue (CIR), however, assessed, as deficiency income tax due from him, the sum of
    P16,395. The CIR claimed that Jamir had an undeclared income for the year 1954
    aggregating P31,274.91, representing the amounts by which his expenses for February
    and May, 1954, had exceeded his income.

    Issue:

    Whether Jamir had an undeclared income?

    Held:

    No, Jamir did not undeclared his income. It appears that, by using the
    "expenditures method", the Government considered as an undeclared income of Jamir's
    expenditures for said months as in excess of his reported income for the same months.
    The Court of Tax Appeals correctly held that the same should be applied by deducting
    the aggregate yearly expenditures from the declared yearly income, not the
    expenditures incurred each month from the declared income.

    In the case at bar, Jamir's total income for the year 1954 (P75,858.65) exceeded
    (Pl7,774.15) the total deductions (P58,134.50) claimed by him. Indeed, Jamir explained
    and introduced evidence to the effect that the said sums of P1,281.24 and P29,993.67
    represented advances made to him by customers in the months of February and May,
    1954, and that the income derived from the corresponding transactions were entered in
    his books of account in subsequent months, and this explanation was found by the Court
    of Tax Appeals to have been proven satisfactorily. The records before us do not warrant
    a different conclusion.

    The next question raised by appellant refers to Jamir's claim for car depreciation
    and salary of his driver. Although petitioner had disallowed one-half (1/2) of these claims
    because it appears that the car was used by Jamir for personal and business purposes, the
    CTA allowed a deduction of three-fourths (3/4) of said amounts, the car having been used
    by Jamir "more for business than for personal purpose".

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