COLLECTOR OF INTERNAL REVENUE, PETITIONER, VS. GOODRICH INTERNATIONAL RUBBER CO., RESPONDENT.

In the decision of December 22, 1967, this Court modified that of
the Court of Tax Appeals, and ruled that respondent’s alleged representation
expenses were fully taxable; it also reduced the claim for bad debts up to
P22,627.35 only.

Petitioner-appellant Collector of Internal Revenue has now filed
a motion for reconsideration praying that the Court order also the payment by
respondent of 5% surcharge and 1% monthly interest as provided in section 51(e)
of the National Internal Revenue Code (before it was amended by Republic Act
No. 2343).  The respondent Goodrich
International Rubber Co. opposes this motion on the ground that this claim for
surcharge and monthly interest was not specifi­cally pointed out in
petitioner’s assignment of errors.

It appearing, however, that the imposition of the 5% sur­charge
and 1% monthly interest is required expressly by the statute, the Court believes that the failure to assign it
as error should not be an obstacle to its imposition where proper, considering
that “taxes are the life-blood of the government and their prompt and
certain availability an imperious need” (Bull v. U. S., 79 L. Ed. 1421,
1427).

Finding the motion for reconsideration meritorious, the
dispositive part of our main decision is hereby modified by adding a paragraph
reading as follows:

“The respondent is therefore ordered:

“(1)    To pay the sum of P8,439.00, as deficiency
income tax for 1952, plus the 5% surcharge and 1% monthly interest thereon from
July 20, 1956 until full pay­ment thereof; and

“(2)    To pay the sum of P7,612.66 as deficiency
income tax for 1951, plus the 5% surcharge and 1% monthly interest, there­on
from December 29, 1957 until full pay­ment thereof.”

SO ORDERED.

Dizon, Makalintal, Bengzon, Zaldivar, Sanchez, Castro, Angeles,
and Fernando, JJ., concur.