MOTICHAND HIRACHAND & ORS vs BOMBAY MUNICIPAL CORPORATION

The Supreme Court held that under Section 154(i) of the Bombay Municipal Corporation Act, the assessing authority can consider income derived from advertisements when determining the rateable value of a property. The Court affirmed that such income, even if classified as a license fee rather than rent, is relevant for assessing what a hypothetical tenant would pay. The High Court's decision to uphold the increased rateable value based on this additional income was thus confirmed, establishing that all potential income streams must be accounted for in property assessments.