COMMISSIONER OF INTERNAL REVENUE vs. COURT OF APPEALS and ATLAS CONSOLIDATED MINING AND DEVELOPMENT CORPORATION G.R. No. 106913 May 10, 1994

FACTS: Petitioner is a mining corporation, organized and existing under and by virtue of the laws of the Philippines, operates a concession in Toledo City, Cebu. It actually used and/or consumed tax paid extra gasoline and diesel fuel for the mining operation purchased from Mobil Oil Philippines.

Sometime in 1978 petitioner filed with the Commissioner of Internal Revenue a written claim for tax credit. It claimed 25% of the specific taxes paid on said fuel oils pursuant to Sec. 5 of Republic Act No. 1435 in relation to Sec. 142 and 145 of the Tax Code

There being no action taken on its claim for refund, petitioner filed before the CTA a judicial claim for refund. The CTA granted the claim for refund and ordered the CIR to refund and/or credit amount

The CIR then appealed to the CA. Petitioner that Atlas is not entitled to the tax refund because no additional tax was imposed on it under any city or municipal ordinance as provided under Section 4 of R.A. No. 1435. The CA affirmed the decision of the CTA. Its Motion for reconsideration having failed hence, this recourse.


ISSUE: Whether or not in the instant case, the petitioner may raise a new issue for the first time on appeal.

HELD: The Supreme Court may review such matters as may be necessary to serve the interest of justice. It has ample authority to review and resolve matters not specifically raised or assigned as error by the parties if it finds that the consideration and determination of the same is necessary in arriving at a just resolution of a case. Where the issues already raised also rest on other issues not specifically presented, as long as the latter issues bear relevance and close relation to the former and as long as they arise from matters on record, the Court has the authority to include them in its discussion of the controversy as well as to pass upon them. Wherefore, the petition is GRANTED.