diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index f81addc8b83..eb96144058e 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -75,10 +75,10 @@ from erpnext.stock.get_item_details import (
 	get_item_warehouse,
 =======
 	ItemDetailsCtx,
+	_get_item_tax_template,
 	get_conversion_factor,
 	get_item_details,
 	get_item_tax_map,
-	get_item_tax_template,
 	get_item_warehouse_,
 >>>>>>> 03c9d16ca6 (fix: fetch get_item_tax_template while update items)
 )
@@ -3655,6 +3655,7 @@ def set_child_tax_template_and_map(item, child_item, parent_doc):
 		"base_net_rate": item.get("base_net_rate"),
 	}
 
+<<<<<<< HEAD
 <<<<<<< HEAD
 	child_item.item_tax_template = _get_item_tax_template(args, item.taxes)
 	if child_item.get("item_tax_template"):
@@ -3663,6 +3664,18 @@ def set_child_tax_template_and_map(item, child_item, parent_doc):
 		)
 =======
 	child_item.item_tax_template = get_item_tax_template(ctx, item.taxes)
+=======
+	item_tax_template = _get_item_tax_template(ctx, item.taxes)
+
+	if not item_tax_template:
+		item_group = item.item_group
+		while item_group and not item_tax_template:
+			item_group_doc = frappe.get_cached_doc("Item Group", item_group)
+			item_tax_template = _get_item_tax_template(ctx, item_group_doc.taxes)
+			item_group = item_group_doc.parent_item_group
+
+	child_item.item_tax_template = item_tax_template
+>>>>>>> 97e7916b66 (fix: resolve item tax template from item group in update items)
 	child_item.item_tax_rate = get_item_tax_map(
 		doc=parent_doc,
 		tax_template=child_item.item_tax_template,