Housing And Urban Development ... vs M.C.D. And Anr

The Supreme Court held that under Section 119(1) of the Delhi Municipal Corporation Act, 1957, lands and buildings that are properties of the Union are exempt from property taxes. The Court ruled that since no formal lease deed was executed in favor of the appellant during the relevant period, the land remained unlet, and the right to let the land was still vested with the Central Government. Consequently, the assessment of property tax against the appellant was invalid, and the appeal was allowed, overturning the High Court's decision.