HOUSING & URBAN DEV. CORPN. LTD. vs M.C.D.

The Supreme Court held that under Section 119(1) of the Delhi Municipal Corporation Act, 1957, properties of the Union are exempt from property taxes. The appellant's contention that no tax could be levied on the land before the execution of a formal lease deed was upheld, as the land remained unlet and the right to let it vested with the Central Government. Consequently, the assessment of property tax for the period from 2nd July 1990 to 31st March 1995 was deemed invalid, leading to the appeal's success.