ARINDAM SINHA, J.

1. These two writ petitions are at the instance of two partners of a partnership firm. The petitioner no.1 is the UK based partner while the petitioner no.2 is the partner based in the Netherlands. The partnership is the assessee known as P & O Nedlloyd which suffered issuance of notices under Section 148 of the Income Tax Act, 1961 relating to assessment years 2005-2006 and 2006-2007. The notices are annexures P-9 and P-13 to the respective writ petitions. The challenge in these writ petitions is to the said notices.

2. Mr. Kaka, learned senior Advocate appearing on behalf of the petitioners had drawn attention to the assessment order dated 10th November, 2008 relating to the notice’s assessment year 2006-07. In paragraph 5 of the said order the department was of the view that as per the provisions of the Double Taxation Avoidance Agreement (DTAA), income from operation of ships in international traffic is not liable to tax in India in the hands of either of the two corporate partners. However the department went on to say further that which the petitioners contend, cannot be sustained.

“…PONP being a partnership firm based in U.K., it is fiscally transpar