MUNICIPAL CORPORATION, INDORE vs RAI BAHADUR SETH HIRALAL & OTHERS

The Supreme Court ruled that the Madhya Bharat Municipalities Act, 1954, specifically Section 73(2), mandates that house tax must be assessed on the net annual letting value after a 10% statutory allowance, rather than the gross value. The Court held that while Section 2(c) of the Act saves previous rules, it only applies if they are consistent with the new Act's provisions. Consequently, the Municipal Corporation's levy of house tax at 7% of the gross annual letting value was invalid as it contravened the requirements of Section 73(2).