BHAGWANT RAI vs STATE OF PUNJAB .

The Supreme Court addressed the interpretation of Section 3(1)(b) of the Punjab Municipal Act, 1911, regarding the determination of annual value for property tax assessment. The Court held that the actual rent received by the landlord does not serve as the basis for determining the annual value; rather, it must be assessed based on the standard rent determinable under the Rent Act, even if the standard rent has not been fixed. The appeal was allowed, overturning the High Court's dismissal of the writ petition.