A.K. MENON, J.

1. By this writ petition, the petitioner challenges the notice under Section 148 of the Income Tax Act, 1961 (the 'Act') dated 21st July, 2003 seeking to reopen the assessment of the Petitioner's partnership firm for the assessment year 1990-91.

2. The brief facts are as follows : The petitioner is a partnership firm carrying on business at all material times with its principal place of business at 95, Queen's Road, Mumbai and with three other branches at one each at Juhu (Mumbai), Pune and Ahmedabad. With effect from 31st March, 1990 two partners of the petitioner firm retired. By a deed of retirement dated 25th May, 1990 the two retiring partners were allotted the branch at Ahmedabad with all its assets and liabilities at book value as their share in the business and as more particularly set out in the petition. During the course of assessment proceedings for the assessment year 1991-92, it was found that with effect from 1st April, 1990 the petitioner firm was left with only three shops situated at Queen's Road, Juhu and Pune. The Assessing Officer held that the branch at Ahmedabad which came to be allotted to the aforesaid retiring partners amounted to a