SHC dismisses pleas

RECORDER REPORT

ISLAMABAD: Sindh High Court (SHC) has dismissed petitions filed against imposition of tax on immovable properties on “deemed income basis” under section 7E of Income Tax Ordinance, 2001.

The hearing of cases dealing with section 7E was concluded at SHC. The court dismissed the petitions through a short order and the reasons will be recorded later on by the court through a detailed judgment.

The petitioners have questioned the constitutionality of Section 7E – the tax on deemed income of the Income Tax Ordinance, 2001, inserted through the Finance Act, 2022, on the premise of legislative incompetence of the Parliament to enact law outside the scope of Entry 50 of the Federal Legislative List, Fourth Schedule of the 1973 constitution.

The federal government has levied income tax on deemed income through section 7-E of the Income Tax Ordinance, 2001.