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Commissioner of Internal revenue vs. Manning, et al

COMMISSIONER OF INTERNAL REVENUE, petitioner, vs. JOHN L. MANNING, W.D. McDONALD, E.E. SIMMONS and THE COURT OF TAX APPEALS, respondents.

G.R. No. L-28398 | 1975-08-06

D E C I S I O N

CASTRO, J:

This is a petition for review of the decision of the Court of Tax Appeals, in CTA case 1626, which set aside the income tax assessments issued by the Commissioner of Internal Revenue against John L. Manning, W.D. McDonald and E.E. Simmons (hereinafter referred to as the respondents), for alleged undeclared stock dividends received in 1958 from the Manila Trading and Supply Co. (hereinafter referred to as the MANTRASCO) valued at P7,973,660.

In 1952 the MANTRASCO had an authorized capital stock of P2,500,000 divided into 25,000 common shares; 24,700 of these were owned by Julius S. Reese, and the rest, at 100...