VISAKHAPATNAM MUNICIPALITY vs KANDREGULA NUKARAJU & ORS.

The Supreme Court held that the inclusion of two villages within the municipality under Section 3(1) of the Andhra Pradesh Municipalities Act, 1965 was valid. However, the Court ruled that Clause 12 of Schedule 9 could not justify the imposition of property tax from April 1, 1966, as no tax was being levied on that date. The Court dismissed the appeal, affirming the High Court's decision that the municipality lacked the authority to demand property tax for the newly included areas prior to the resolution passed in 1971.