JUDGMENT :

Kurian, J.

1. Leave granted in SLP (C) No. 18110/2006.

2. The basis of assessment of property tax under the New Delhi Municipal Council Act, 1994 (in short the “NDMC Act”) is the subject matter of these appeals. In Chapter VIII of Taxation, Section 60 of the NDMC Act has dealt with the subject. Under Section 60(1)(a), the Municipal Council is entitled to levy the property tax. Under sub-section (3) the property tax shall be levied, assessed and collected in accordance with the provisions of the Act and the bye-laws made thereunder. Section 61 of the NDMC Act speaks about the rates of property tax and it is provided that unless otherwise specified under the Act, the property tax shall not be less than 10% and not more than 30% of the rateable value of lands and buildings. Section 63 of the NDMC Act deals with the determination of rateable value of lands and buildings. The provision reads as follows:

“63. Determination of rateable value of lands and buildings assessable to property tax.-(1) The rateable value of any lands or building assessable to any property taxes shall be the annual rent at which such land or building might reasonably be expected to let from year to year le