G.R. No. 45425; April 29, 1939 https://lawphil.net/judjuris/juri1939/apr1939/gr_l-45425_1939.html Facts: The petitioners contributed in order to purchase a sweepstakes ticket worth Php 2.00. They registered the same in the name of Jose Gatchalian and company. The ticket has eventually won 3rd prize amounting to Php 50,000 which they divided in accordance with their aliquot share in the cost of the ticket. A month after winning, they were required by income tax examiner Alfredo David to file the corresponding income tax return covering the prize won by their unregistered partnership, Jose Gatchalian & Company. The defendant made an assessment against Jose Gatchalian & Company requesting the payment of the sum of P1,499.94 to the deputy provincial treasurer of Pulilan, Bulacan. Petitioners replied that they merely formed a co-ownership not partnership and requested the CIR that they may be exempted from paying such assessed income tax plaintiffs requested exemption from the payment of the income tax. However, it was denied by the CIR. The payment was made under protest and petitioners filed for request for refund at the same time. However, the protest was overruled and the demand for refund was denied. Hence, they elevated the matter to the Supreme Court requesting the refund of amount of Ps 1,863.44 and legal interest. Issue: Whether or not the petitioners formed a partnership, hence not exempted from paying income tax. Ruling: Yes, a partnership was formed. The Supreme Court ruled that according to the stipulated facts the plaintiffs organized a partnership of a civil nature because each of them put up money to buy a sweepstakes ticket for the sole purpose of dividing equally the prize which they may win, as they did in fact in the amount of P50,000. The partnership was not only formed, but upon the organization thereof and the winning of the prize, Jose Gatchalian personally appeared in the office of the Philippine Charity Sweepstakes, in his capacity as co-partner, as such collected the prize. The office issued the check for P50,000 in favor of Jose Gatchalian and company, and the said partner n the same capacity, collected the said check.