https://www.taxtmi.com/caselaws?id=6507 Valuation addresses whether a contractual obligation diverting a portion of an unearned increase in land value constitutes income of the assessee or belongs to the lessor; the controlling test is whether the amount ever formed part of the assessee's income. Where a leasehold was acquired subject to a clause requiring 50% of any unearned increase on assignment to be payable to the lessor, that 50% is treated as belonging to the lessor and not part of the assessee's wealth. Operatively, market valuation of the leasehold for wealth taxation must be reduced by 50% of the unearned increase on a hypothetical sale basis. en-us Fri, 01 Apr 1977 00:00:00 +0530 Sat, 24 Jan 2026 11:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6507 Valuation addresses whether a contractual obligation diverting a portion of an unearned increase in land value constitutes income of the assessee or belongs to the lessor; the controlling test is whether the amount ever formed part of the assessee's income. Where a leasehold was acquired subject to a clause requiring 50% of any unearned increase on assignment to be payable to the lessor, that 50% is treated as belonging to the lessor and not part of the assessee's wealth. Operatively, market valuation of the leasehold for wealth taxation must be reduced by 50% of the unearned increase on a hypothetical sale basis. Case-Laws Wealth-tax Fri, 01 Apr 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6507