2001 (3) TMI 678

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....one, for the Respondent. [Order per : S.L. Peeran, Member (J)]. - These two Revenue appeals arise from a common order passed by Commissioner (Appeals), Trichy by which he has upheld the contention of the assessee that no notional interest is required to be added in respect of security deposits on the advances kept by the dealers with the assessees. In this regard, he has relied on the Divisi....

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....add notional interest on account of advance across the Board in all the cases is not maintainable. 2. Ld. DR Shri S. Kannan takes us through the grounds made out by Revenue in these appeals and contends that there is clear nexus with regard to deposits made by the dealers as otherwise the appellants would have taken loan from the bank and they would have paid interest on such loans. Theref....

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....erest earned from such deposits to the buyer. Therefore, the Order-in-Original directing for addition of notional interest is required to be upheld. 3. We have carefully considered the submissions and have noted the judgments cited by the Commissioner (Appeals) in his order. The Commissioner (Appeals) has analysed the judgment of the Madras High Court and the Supreme Court in the case of M....