KARACHI: Federal Constitutional Court of Pakistan (FCCP) bench headed by Chief Justice Amin-uddin Khan with Justice Ali Baqar Najafi allowed hundreds of civil appeals challenging insertion of Section 7-E into Income Tax Ordinance holding the impugned section to be ultra vires of the constitution.
The appellants were represented by Mr. Rashid Anwer, ASC, Mr. Salman Akram Raja, ASC, Mr. Faisal Siddiqi, ASC Mr. Abid H. Shaban, ASC Malik Qamar Afzal, ASC Barrister Jahanzeb Awan, ASC Mr. Shahzad Ata Illahi, ASC [Assisted by Mr. Salman Sohail Khan, Adv] Mr. Hyder Ali Khan, ASC Hafiz Muhammad Idrees, ASC Syed Farid Bukhari, ASC Mr. Shehryar Kasuri, ASC Ms. Samia Faiz Durrani, ASC Mr. Muhammad Aleem, ASC Sheikh Muhammad Akram, ASC Mr. Faisal Jaffar, ASC Mr. Saleem Mangrio, ASC Mr. Arshad Hussain Shahzad, ASC Syed Tauqeer Bukhari, ASC Syed Tanseer Bukhari, ASC Dr. Usman Mirza, AOR Mr. Abdul Ghaffar Khan, AOR Mr. Tariq Aziz, AOR Mr. Anis Muhammad Shahzad, AOR Dr. Tariq Masood, AHC Ch. Hashim Azeem, AHC and Mr. Ejaz Hussain Rathore, In-Person.
The respondents including FBR were represented by Ms. Asma Hamid, ASC, Dr. Shah Nawaz, ASC Hafiz Ahsan Ahmad Khokhar, ASC, Malik Itaat Hussain Awan, ASC Mr. Ghulam Shoaib Jally, ASC Mr. Saeed Tahir Sulehri, ASC Mrs. Misbah Gulnar Sharif, ASC Barrister Iftikhar Raza Khan, ASC Mr. Osama Shahid, ASC Mr. Atif Rahim Burki, ASC Ms. Shazia Bilal, ASC Mr. Amjad Hussain Malik, ASC Mr. Irfan Mir Halipota, ASC Mr. Manzoor Hussain, ASC Mr. Ibrar Ahmed, ASC: Ms. Asma Hamid, ASC Assisted by M/s. Mustafa Khalid and Faisal Khalid, Advocates] Dr. Shah Nawaz, ASC Hafiz Ahsan Ahmad Khokhar, ASC [Assisted by Aimal Ejaz, Adv] Malik Itaat Hussain Awan, ASC Mr. Ghulam Shoaib Jally, ASC Mr. Saeed Tahir Sulehri, ASC Mrs. Misbah Gulnar Sharif, ASC Barrister Iftikhar Raza Khan, ASC Mr. Osama Shahid, ASC Mr. Atif Rahim Burki, ASC Ms. Shazia Bilal, ASC Mr. Amjad Hussain Malik, ASC Mr. Irfan Mir Halipota, ASC Mr. Manzoor Hussain, ASC Mr. Ibrar Ahmed, ASC. Badshah Wazir, Member Legal FBR Mr. Qaiser Mehmood Sra, Legal Advisor FBR Mr. Yousaf Khan, S.O. Legal and Chaudhry Aamir Rehman Addl. AGP appeared for the federal government.
The operative part of judgment reads as follows:
“Having heard the learned counsel for the parties at considerable length and upon due deliberation, we are persuaded to hold that Section 7E of the Income Tax Ordinance, 2001, is ultra vires the Constitution, and is accordingly struck down, being void ab initio. For the reasons to be recorded separately, all the civil petitions filed by the taxpayers against the judgments of the High Court of Sindh and C.P.L.A.1442-K of 2022, etc. 33 the Lahore High Court are converted into appeals and allowed while civil petitions filed by the FBR/C.I.R against the judgments of the Peshawar High Court and the High Court of Balochistan are dismissed. The transferred cases are disposed of accordingly. Consequently, all actions, proceedings, and notices initiated or taken by the FBR/C.I.R under Section 7E are declared to be without lawful authority and are hereby set aside.”
The full text of detail 92 paged judgment follows separately.