MORVI MUNICIPALITY vs STATE OF GUJARAT .

The Supreme Court held that the annual letting value for property tax assessment under the Gujarat Municipalities Act, 1963 must be based on the annual standard or fair rent as defined by applicable rent control legislation, specifically the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947. The Court found that the High Court correctly upheld Rules 2(7) and 4, while striking down Rule 5 as it allowed for actual rent received to exceed the standard rent, which was not permissible. The assessment lists for the years 1967-68, 1968-69, and 1969-70 were invalidated due to non-compliance with the procedural requirements outlined in Sections 105 to 112 of the Act.