An arrangement for, and a method of, electro-optically reading a target by image capture, employ an aiming assembly for projecting an aiming light pattern on the target that is located within a range of working distances relative to a housing, an imaging assembly for capturing an image of the target and of the aiming light pattern over a field of view, and for generating an electrical signal indicative of the captured image, and a controller for determining a distance of the target relative to the housing based on a position of the aiming light pattern in the captured image, and for processing the electrical signal into information relating to the target when the target lies in a restricted zone within the range of working distances.