Section 371

Section 371: amendment of assessment on appeal

Section 371 deals with a knock-on effect of a successful appeal: where an appeal under section 356, 357 or 362 results in a change to the assessment of a body of individuals or an association of persons (or a new assessment is directed), the appellate authority must also authorise the Assessing Officer to amend, or freshly assess, the corresponding assessment of an individual member of that body or association.

This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.

The rule

If, as a result of an appeal under section 356, 357 or 362, any change is made in the assessment of a body of individuals or an association of persons, or a new assessment of such a body or association is directed, the Joint Commissioner (Appeals), Commissioner (Appeals) or Appellate Tribunal must pass an order authorising the Assessing Officer either to amend the assessment made on any member of that body or association, or to make a fresh assessment on such a member.

Frequently asked questions

If my association of persons wins an appeal, does my individual assessment as a member automatically change?

Not automatically, but Section 371 requires the appellate authority to pass an order authorising the Assessing Officer to amend, or make a fresh assessment on, each member's individual assessment as a consequence of the change to the association's assessment.