In Re Perry Tax Appeal

OPINION OF THE COURT BY

KEMP, C. J.

These appeals are by the Territory of Hawaii and its tax commissioner from the decision of the tax appeal court sustaining the principal contention of the taxpayer.

The facts are undisputed. In 1922 the taxpayer leased a parcel of land owned by him to two tenants for a term of twenty years. The lease required the lessees to erect one or more dwelling houses upon the demised premises at a cost of not less than $10,000 within three years from the date of the lease and at the end of said term, or other earlier determination thereof, to peaceably deliver up to the…