New Provision
Section 327, IT Act 2025
Replaces (IT Act 1961)
187
Chapter
Chapter XVI — Appeals and Revision
Effective From
1 April 2026
Statutory Text — Section 327
here at the time of making an assessment under section 270 or 271, it is found that a change has occurred in the constitution of a firm, the assessment shall be made on the firm as constituted at the time of making the assessment. (2) For the purposes of this section, there is a change in the constitution of the firm— (a) if one or more of the partners cease to be partners or one or more new partners are admitted, subject to the condition that at least one person who was partner of the firm before the change continues as partner after such change; or (b) where all the partners continue with a change in their respective shares or in the shares of some of them. (3) The provisions of sub-section 2(a) shall not apply to a case where the firm is dissolved on the death of any of its partners.
Shahi & Co. — Our Understanding
This section falls under Chapter XVI which governs appeals and revision — your right to challenge an assessment order before the Commissioner (Appeals), ITAT, High Court, and Supreme Court.
Practical Note: If you receive an adverse assessment order, the appeal must be filed within the prescribed time limit. Delay in filing appeals is a common compliance failure that results in forfeiture of the right to appeal.
Shahi & Co., Chartered Accountants
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Disclaimer: This is a reproduction of Section 327 of the Income Tax Act, 2025 (No. 30 of 2025) as published in the Official Gazette of India (CG-DL-E-22082025-265620) for informational and reference purposes only. Shahi & Co., Chartered Accountants makes no warranty as to completeness or accuracy. For the official authenticated text refer to
egazette.gov.in or
incometaxindia.gov.in. This does not constitute legal or tax advice.