Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Live. Where, as a result of an appeal under section 246/246A or section 253, a change is made in the assessment of a body or a partner/member, the Assessing Officer may amend the assessment of the partner/member accordingly.
Finance Act, 2026: No amendment. The Finance Act, 2026 does not touch section 267.
Nature / mechanism: A consequential-amendment power: an appellate change in one assessment (e.g. of a firm/AOP) can be carried into a connected assessment (e.g. of a partner/member).
Litigation profile: Modest direct litigation — candour rule; conceptually allied to consequential reassessment and to findings/directions under section 150.
A. COMMENTARY
Carrying an appellate change into a connected assessment
Section 267 lets the Assessing Officer amend a partner's or member's assessment to reflect a change made, on appeal, in the assessment of the firm/AOP (or vice versa). It is a consequential mechanism that avoids fresh reassessment proceedings where the appellate outcome on one assessment necessarily affects another connected assessment, and operates alongside the finding/direction route in section 150.
B. STATUTORY TEXT (verbatim)
Reproduced verbatim from the Income-tax Act, 1961 (as amended up to the Finance Act, 2025); the Finance Act, 2026 makes no change to this section. Inline numerals in square brackets are the bare Act's amendment-footnote markers.
Amendment of assessment on appeal.
267. Where as a result of an appeal under section 246 or section 246A or section 253, any change is made in the assessment of a body of individuals or an association of persons or a new assessment of a body of individuals or an association of persons is ordered to be made, the 89[Joint Commissioner (Appeals) or the] Commissioner (Appeals) or the Appellate Tribunal, as the case may be, shall pass an order authorising the Assessing Officer either to amend the assessment made on any member of the body or association or make a fresh assessment on any member of the body or association. 89..Ins. by Act No. 08 of 2023, w.e.f. 1-4-2023.
Cluster 1 — Cognate: consequential effect of appellate findings
Position (statutory)
Position Section 267 enables a consequential amendment flowing from an appellate change; it is to be read with the limitation-saving for findings and directions under section 150.
Caution Stated from the bare provision; verify the connection between the assessments.
CHAPTER XX — APPEALS AND REVISION | F.—General
Section 267 — Amendment of Assessment on Appeal
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Live. Where, as a result of an appeal under section 246/246A or section 253, a change is made in the assessment of a body or a partner/member, the Assessing Officer may amend the assessment of the partner/member accordingly.
Finance Act, 2026: No amendment. The Finance Act, 2026 does not touch section 267.
Nature / mechanism: A consequential-amendment power: an appellate change in one assessment (e.g. of a firm/AOP) can be carried into a connected assessment (e.g. of a partner/member).
Litigation profile: Modest direct litigation — candour rule; conceptually allied to consequential reassessment and to findings/directions under section 150.
A. COMMENTARY
Carrying an appellate change into a connected assessment
Section 267 lets the Assessing Officer amend a partner's or member's assessment to reflect a change made, on appeal, in the assessment of the firm/AOP (or vice versa). It is a consequential mechanism that avoids fresh reassessment proceedings where the appellate outcome on one assessment necessarily affects another connected assessment, and operates alongside the finding/direction route in section 150.
B. STATUTORY TEXT (verbatim)
Reproduced verbatim from the Income-tax Act, 1961 (as amended up to the Finance Act, 2025); the Finance Act, 2026 makes no change to this section. Inline numerals in square brackets are the bare Act's amendment-footnote markers.
Amendment of assessment on appeal.
267. Where as a result of an appeal under section 246 or section 246A or section 253, any change is made in the assessment of a body of individuals or an association of persons or a new assessment of a body of individuals or an association of persons is ordered to be made, the 89[Joint Commissioner (Appeals) or the] Commissioner (Appeals) or the Appellate Tribunal, as the case may be, shall pass an order authorising the Assessing Officer either to amend the assessment made on any member of the body or association or make a fresh assessment on any member of the body or association. 89..Ins. by Act No. 08 of 2023, w.e.f. 1-4-2023.
C. AUTHORITIES
Candour rule — consequential machinery; cognate authority noted.
Cluster 1 — Cognate: consequential effect of appellate findings
Position (statutory)
Position Section 267 enables a consequential amendment flowing from an appellate change; it is to be read with the limitation-saving for findings and directions under section 150.
Caution Stated from the bare provision; verify the connection between the assessments.