I have the following code
<div> @Html.LabelFor(m=>m.WrongLogin) </div>
I want to display the label dynamically based on a condition from the server side code in the controller. If the controller returns false value then I need to make the label visible.

Just use an if statement:
@if (Model.LoginFailed) // Or whatever...
{
@Html.LabelFor(m => m.WrongLogin);
}
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