BADAR DURREZ AHMED, J.

1. This appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as ‘the said Act’) is directed against the order passed by the Income Tax Appellate Tribunal in ITA 1808/Del/2012 pertaining to the assessment year 2008-09.

2. The substantial question of law, which arises for our consideration in this appeal, is as follows:-

“Whether the Income Tax Appellate Tribunal as also the Commissioner of Income Tax (Appeals) had not erred in law and / or on facts in deleting the disallowance on discount and interest on borrowing through commercial papers and Non-Convertible Debentures (NCDs) amounting to Rs. 10,79,75,982/-?”

3. The Assessing Officer, by virtue of the assessment order dated 29.12.2010, disallowed expenditure to the tune of Rs.10,79,75,982/- on the ground that the expenditure was not for business purposes. The said figure of Rs. 10,79,75,982/- had two components. The first component was the discount on commercial paper amounting to Rs. 8,45,75,982/-. The second component was the amount of Rs. 2.34 crores which was interest on non-convertible debentures.

4. The Assessing Officer had required the assessee to explain these expenditu