MUNICIPAL CORPORATION OF DELHI vs RISHI RAJ JAIN

The Supreme Court ruled that under Section 115 of the Delhi Municipal Corporation Act, 1957, agricultural lands and buildings are exempt from general tax, but dwelling houses are not. The Court held that the entire area of a farm house does not become taxable simply because a dwelling house is constructed, especially if the area is not being used for non-agricultural purposes. The Appellate Authority's decision to levy tax based on the market price of the entire 2.5 acres was deemed unjustified, as it lacked evidence of the land's use for the dwelling house.