Pakistan, May 8 -- The Federal Constitutional Court has declared the controversial Section 7E of the Income Tax Ordinance, 2001, unconstitutional and void in its entirety, while also declaring all actions, notices and proceedings initiated by the Federal Board of Revenue (FBR) and the Revenue Division under the provision as ineffective and unlawful.

A two-member bench comprising Chief Justice Amin-ud-Din Khan and Justice Ali Baqar Najafi heard the case on Thursday. The court issued a written order after announcing its short judgment.

During the hearing, the court was informed that Section 7E had been inserted into the Income Tax Ordinance through the Finance Act, 2022. However, conflicting judgments had been delivered by various high co...