COMMISSIONER OF INTERNAL REVENUE v. PRIMETOWN PROPERTY GROUP, INC.

G.R. No. 162155, 28 August 2007, CORONA, J.

FACTS:
Gilbert Yap, Vice Chair of Primetown applied on March 11, 1999 for a refund or credit of
income tax which Primetown paid in 1997. He claimed that they are entitled for a refund
because they suffered losses that year due to the increase of cost of labor and materials, etc.
However, despite the losses, they still paid their quarterly income tax and remitted creditable
withholding tax from real estate sales to BIR. Hence, they were claiming for a refund. On May
13, 1999, revenue officer Elizabeth Santos required Primetown to submit additional
documents to which Primetown complied with. However, its claim was not acted upon which
prompted it to file a petition for review in CTA on April 14, 2000. CTA dismissed the petition
as it was filed beyonf the 2-year prescriptive period for filing a judicial claim for tax refund
according to Sec 229 of NIRC. According to CTA, the two-year period is equivalent to 730 days
pursuant to Art 13 of NCC. Since Primetown filed its final adjustment return on April 14, 1998
and that year 2000 was a leap year, the petition was filed 731 days after Primetown filed its
final adjusted return. Hence, beyond the reglementary period. Primetown appealed to CA. CA
reversed the decision of CTA. Hence, this appeal.

ISSUE:
Whether or not the petition was filed within the two-year period

HELD:
Pursuant to EO 292 or the Administrative Code of 1987, a year shall be understood to be 12
calendar months. The SC defined a calendar month as a month designated in the calendar
without regard to the number of days it may contain. The court held that Administrative Code
of 1987 impliedly repealed Art 13 of NCC as the provisions are irreconcilable. Primetown is
entitled for the refund since it is filed within the 2-year reglementary period.