JUDGMENT :

K.R. SHRIRAM, J.

1. Petitioner had filed nine Writ Petitions challenging notices dated 19th July 2021 and 14th July 2021 issued under Section 153 of the Income Tax Act, 1961 (the Act) for Assessment Year 2011-2012 (WP No.2501 of 2021), Assessment Year 2012-2013 (WP No.2432 of 2021), Assessment Year 2013-2014 (WP No.2411 of 2021), Assessment Year 2014- 2015 (WP No.2403 of 2021), Assessment Year 2015-2016 (WP No.2415 of 2021), Assessment Year 2016-2017 (WP No.2423 of 2021), Assessment Year 2017-2018 (WP No.2424 of 2021), Assessment Year 2018-2019 (WP No.2399 of 2021) and Assessment Year 2019-2020 (WP No.2395 of 2021). Subsequent to filing of these petitions, assessment orders were passed pursuant to the above mentioned notices for the Assessment Years 2011-2012 to 2019-2020. The said assessment orders were also challenged by filing nine separate Writ Petitions mentioned in the cause title for Assessment Years 2011-2012 to 2019-2020 and the grounds of challenge included those raised in the earlier nine petitions. For the reasons set out in the order of this Court passed on 21st July 2023 in above mentioned Writ Petitions, those petitions were disposed as withdrawn.

2. Various independent grounds of challenge have been raised in the Writ Petitions. The petition number and Assessment Year are as under :

WP No.2593 of 2021 - A.Y. 2011-2012

WP No.2598 of 2021 - A.Y. 2012-2013

WP No.2847 of 2021 - A.Y. 2013-2014

WP No.2597 of 2021 - A.Y. 2014-2015

WP No.2594 of 2021 - A.Y. 2015-2016

WP No.2588 of 2021 - A.Y. 2016-2017

WP No.2595 of 2021 - A.Y. 2017-2018

WP No.2625 of 2021 - A.Y. 2018-2019

WP No.2696 of 2021 - A.Y. 2019-2020

The lead petition is Writ Petition No.2595 of 2021 for Assessment Year 2017-2018 and the facts of that case as well as the grounds of challenge arising therein are set out hereinafter. Petitioner prays :

(a) That the Hon’ble Court may be pleased to issue a writ of certiorari or mandamus or a writ in the nature of certiorari or mandamus or any appropriate writ, order or direction after calling for the records and proceedings of respondent and quash and set aside the impugned assessment order under Section 153C read with Section 144 of the Act.

By consent, all these petitions are taken up for hearing at the admission stage itself. Therefore, Rule. Rule made returnable forthwith.

3. Petitioner is a partnership firm engaged in the business of financing, i.e., giving loans to parties on interest against cheques and bills of exchange. Petitioner is also engaged, inter alia, in the business of trading in shares, property and broking.

4. On 30th October 2017, petitioner had filed its return of income for Assessment Year 2017-2018 showing a loss of Rs.270,23,38,423/-. Petitioner’s trading and profit and loss account, forming part of the return of income showed that loan account balances of Rs.360,59,25,520/- had been written off during the year and a deduction from petitioner’s taxable income was claimed in respect of the same. The amount written off comprised of loans given to Hubtown Limited (Rs.357,22,54,398/-) and to one Vadilal Gada (Rs.3,65,00,000/-), less others (net) Rs.28,28,878/-.

5. During the course of assessment proceedings for Assessment Year 2017-2018, the Assessing Officer issued a notice dated 14th June 2019 under Section 142(1) of the Act requiring petitioner to furnish details regarding the write-off of bad debts. By a letter dated 18th June 2019 petitioner replied to the aforesaid notice providing details of the amounts of loan to Hubtown Limited that had been written off during the year alongwith reasons in support of the claim for deduction thereto when computing its income chargeable to tax. The Assessing Officer passed an assessment order dated 29th June 2019 under Section 143(3) of the Act for Assessment Year 2017-2018, wherein, after specific reference to notice dated 14th June 2019 that was issued