Shopper's Stop Limited - Securities and Exchange Board of India

III Litigation Pending - By and/or Against the Promoters
By the Promoters
A) Pending Arbitration Proceedings
There are none
B) Litigation Pending – FEMA
C)
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Group and the C.L. Group to
attempt arriving at a global
settlement in respect of all the
disputes, in the meantime. The
matter was therefore adjourned
upto August 17, 2004. On
August 17, 2004, the matter was
further adjourned to September
14, 2004.
G.L. Group and C.L. Group
have accordingly commenced
the settlement talks. In the
meantime Chandru Raheja has
filed reply on his own behalf and
for and on behalf of Neel
Raheja and Ravi Raheja
denying the allegations of the
said perjury.
C) Litigation Pending – Income Tax
Set out below are income tax cases pending against various Promoter entities. None of
these cases would have a likely adverse effect on the financial performance of the
Company.
ASSESSMENT YEAR 1990-91
K.Raheja Pvt. Limited.
Cross Appeal
The Company’s Return of Income was assessed under section 143(3) of the Income Tax
Act, 1961. The A.O disallowed interest of Rs. 5,45,316/-. The company filed an appeal
with the CIT (A) (bearing No ITA No CIT (A) -XL \/DCSR-30/113/1993-94) against the
disallowance made by the A.O. The CIT.(A) allowed the deduction of Rs.2,35,242/- on
which the Department has gone in appeal .The company has filed a cross objection
stating that the entire interest amount of Rs.5,45,316/- to be allowed as deduction from
total income.
ASSESSMENT YEAR 1991-92
K.Raheja Pvt. Limited
Cross Appeal
The company’s Return of Income was assessed under section 143(3) of the Income Tax
Act,1961. The A.O disallowed interest expenses amounting to Rs.8,25,243/- . The
company filed an appeal with the CIT(A)( bearing No CIT (A) -XL/DC SR-30/28/94-95)
against the disallowance. . Out of above, the CIT(A) allowed a deduction of Rs.2,26,121/-
on which the Department has gone in appeal .The company has filed a cross objection
stating that the entire amount of Rs.8,25,243/- to be allowed as a deduction from total
income.
ASSESSMENT YEAR 1994-95
K.Raheja Corp Pvt. Limited (formerly Paramount Hotels Limited)
The company’s Return of Income was assessed u/s.143(3) of the Income Tax Act, 1961
Thereafter the case was reopened u/s.147.
The A.O. disallowed interest of Rs.1,26,36,765/- u/s.36 (i) (iii) from the head "business
income" However the interest allowed u/s.57 from the head 'income from other