For advice on above subject, you may contact J.A.B. Bulao & Associates at jabblaw@yahoo.com or send a message to  Cell No. 09155205254.

FACTS:  BIR filed a case against XYZ Inc. CTA ruled in favor of XYZ Inc. BIR appealed and  raised an issue on whether the rule in the Tax Code on the apportionment of tax credits can be applied in appreciating XYZ’ s claim for tax refund. It was previously raised by the parties but CTA did not rule on it. 

ISSUE:  Can an issue not ruled upon at the court below be raised on appeal?

RULING:  Yes. The rule that  matters not taken up in the court below cannot be raised on appeal is not without exception. Courts may relax a procedural rule when compelling reasons so warrant or when justice requires it. What constitutes good and sufficient cause that would merit suspension of the rules is discretionary upon the courts. 

SOURCE:  CIR vs. Eastern Telecommunications Philippines, Inc. (G.R. No. 163835, 07 July 2010).