GR L 24921; (March, 1967) (Digest)
G.R. No. L-24921 March 31, 1967
COMMISSIONER OF INTERNAL REVENUE, petitioner, vs. VISAYAN ELECTRIC COMPANY and THE COURT OF TAX APPEALS, respondents.
FACTS
The Commissioner of Internal Revenue assessed Visayan Electric Company for (a) deficiency income tax (P2,443.30), (b) a 25% surcharge for late payment of franchise tax (P35,419.05), and (c) additional residence tax (P3,850.00). The Court of Tax Appeals rendered a judgment absolving the taxpayer from paying the deficiency income tax and the surcharge but directed it to pay the additional residence tax of P3,850.00. The Commissioner appealed the judgment solely on the portions absolving the taxpayer from the first two sums. The taxpayer did not appeal from the portion ordering payment of the P3,850.00 residence tax. Pending the Commissioner’s appeal, the Commissioner moved for execution of the judgment for the P3,850.00. The Court of Tax Appeals denied the motion for execution.
ISSUE
May the government enforce via execution the portion of the judgment ordering payment of the P3,850.00 additional residence tax, where that portion was not appealed by either party?
RULING
Yes. The Supreme Court granted the petition for certiorari and mandamus, revoked the resolutions of the Court of Tax Appeals, and directed it to issue the writ of execution. The Court ruled that where a portion of a single judgment (1) is not appealed, (2) is separable and distinct from and will not be affected by the appeal on other portions, (3) needs no further proceedings, and (4) has acquired finality, it may be enforced by execution as a matter of right. The judgment for the P3,850.00 residence tax was separable from the other tax items, had become final due to the taxpayer’s failure to appeal, and its correctness was beyond the control of the courts. The provision that an appeal “shall stay” the decision of the Court of Tax Appeals only stays that part of the judgment which is the subject of the appeal. Equitable considerations also favored execution, as the judgment sum did not earn interest and delay would prejudice the government.