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M. E. Holding Corporation Vs. The Hon. CA, et al.

M.E. HOLDING CORPORATION, Petitioner, versus THE HON. COURT OF APPEALS, COURT OF TAX APPEALS, and THE COMMISSIONER OF INTERNAL REVENUE, Respondents.

G.R. No. 160193 | 2008-03-03

D E C I S I O N


VELASCO, JR., J.:

This case involves Republic Act No. (RA) 7432, otherwise known as An Act to Maximize the Contribution of Senior Citizens to Nation Building, Grant Benefits and Special Privileges and for Other Purposes, passed on April 23, 1992. It granted, among others, a 20% sales discount on purchases of medicines by qualified senior citizens.

On April 15, 1996, petitioner M.E. Holding Corporation (M.E.) filed its 1995 Corporate Annual Income Tax Return, claiming the 20% sales discount it granted to qualified senior citizens. M.E. treated the discount as deductions from its gross income purportedly in accordance...