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2017 (10) TMI 541 - AT - Income TaxDeemed dividend u/s 2(22)(e) - advances made in the course of bonafide trade transactions - According to the Assessing Officer advances made in the course of bonafide trade transactions are covered by section 2(22)(e) - whether lending of money was substantial part of the business of the company? - Held that:- CIT-(A) while adjudicating the issue in dispute has relied on the decision of the Hon’ble Bombay High Court in the case of Parley Plastic Limited (2010 (9) TMI 726 - BOMBAY HIGH COURT), wherein the Hon’ble High Court has held that the expression “substantial part” does not come out an idea of being the “major part” or the part that constitute majority of the whole. The Hon’ble High Court held that the legislature had deliberately used the word “substantial” instead of using the word “major” and/or specifying any percentage of business or profit to be coming under the lending business of the lending the money for the purpose of clause (ii) of section 2(22) of the Act. Ld. Sr. DR did not bring before us any contrary decision of the jurisdictional High Court or the Hon’ble Supreme Court. In view of above facts and circumstances, we do not find any infirmity in the finding of the Ld. CIT-(A) on the issue in dispute and accordingly, we uphold the same - Decided against revenue
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