SHIBJI KHESTSHI THACKER vs COMMISSIONERS OF DHANBAD MUNICIPALITY AND ORS.

The Supreme Court held that the assessment of municipal tax under the Bihar and Orissa Municipality Act, 1922, specifically under Section 98(1) and Section 106, must be conducted lawfully and in accordance with the provisions of the Act. The Court found that the original assessment was illegal as it was based on the annual value of the holding rather than on the persons liable for tax. Consequently, the appeal was allowed, and the demand for recovery of arrears of municipal taxes was set aside.