ISLAMABAD: Balochistan High Court (BHC), Tuesday, issued notices to the Federal Board of Revenue (FBR) regarding the constitutionality of Section 7E (tax on deemed income) of the Income Tax Ordinance, 2001.
The court has also restrained the FBR and Chief Commissioner Inland Revenue, Quetta from taking any coercive measures against the petitioners on the strength of Section 7E of the Income Tax Ordinance, 2001.
The court has also issued notice to the Chief Commissioner Inland Revenue, Quetta as a substantial question of interpretation of the constitutional provision is involved.
Deemed income on capital assets: Taxpayers required to file new form separately
The petition has been filed by the Quetta Chamber of Commerce and Industry (QCCI) questioning the constitutionality of Section 7E – 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.
Through this petition, the petitioners have challenged Section 7E inserted in the Income Tax Ordinance, 2001 being contrary to the provisions of Article 142 of the Constitution which as per contention of the petitioners also amounts to double taxation.
Copyright Business Recorder, 2022
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