Fcc Upholds Sindh High Court'S Tax Authority Ruling In Islamabad

On February 24, 2026, the Federal Constitutional Court (FCC) upheld the Sindh High Court's (SHC) judgment regarding Section 175 of the Income Tax Ordinance, 2001, affirming that its wording is 'clear and straightforward.' The three-judge bench, led by Justice Aamer Farooq, stated, 'The impugned judgment does not suffer from any infirmity warranting interference,' emphasizing that the courts cannot dilute explicit legislative language. The FCC clarified that Section 175 allows tax authorities to access premises and documents without prior notice, reinforcing the enforcement capabilities of the Commissioner under the Ordinance. This ruling comes amidst ongoing debates about the powers of the FCC versus the Supreme Court, particularly following the 27th Constitutional Amendment, which has redefined judicial authority in Pakistan. The FCC's decisions are now binding on all courts, including the Supreme Court, which has led to significant legal implications and tensions within the judiciary, as noted by Justice Hasan Azhar Rizvi, who remarked, 'The FCC is the apex court of the country.'