R. R. ENGINEERING CO. vs ZILA PARISHAD, BAREILLY & ANR.

The Supreme Court upheld the constitutional validity of the 'Circumstances and Property Tax' imposed by the Zila Parishads under the U.P. Kshetra Samitis and Zila Parishads Act, 1961, clarifying that this tax is distinct from income tax and can be levied without necessitating income in the hands of the assessee. The Court ruled that the tax falls under the residuary entry of List I, Entry 97, and is permissible under Article 277 of the Constitution. The appeal challenging the tax's validity was dismissed, affirming the High Court's decision.