Khadi Ashram vs State Of Haryana & Anr

The Supreme Court upheld the Haryana Municipal Amendment Act, 2001, which amended the definition of 'annual value' in Section 2 of the Principal Act, transitioning from a rental method to a capital value method for property tax assessment. The Court found that the amendment does not violate Article 14 of the Constitution, as the Legislature has the authority to determine the basis for property tax valuation. The Court concluded that the new definition aims to enhance revenue for municipalities by including land value in property tax calculations.