What can be the tests to determine “substantial part of business” of lending company for the purpose of application of exclusion provision under section 2(22)?

CIT Vs. Parle Plastics Ltd. (2011) 332 ITR 63 (Bombay High Court) Under section 2(22), dividend does not include, inter alia, any advance or loan made to a shareholder by a company in the ordinary course of its business, where the lending of money is a substantial part of the business of the company. The expression used in the exclusion provision of section 2(22) is “substantial part of the business”. The expression “substantial part” does not connote an idea of being the “major part” or the part that constitutes majority of the whole. Sometimes a portion wh...