HANEY, Circuit Judge.
This action to recover income taxes paid, involves the question as to when a lessor derives income in the case where the lessee places improvements on the leased land and the lease is terminated for default of the lessee.
Appellee, a California corporation, hereafter called the lessor, was the owner of a parcel of real property in San Francisco on March 18, 1909, and on that date executed a lease covering such property to Terminal Investment...
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