The assessee claimed deduction under section 80G in respect of donations forming part of its Corporate Social Responsibility (CSR) expenditure. The Assessing Officer and the Commissioner (Appeals) disallowed the claim on the ground that CSR expenditure was mandatory under the Companies Act, 2013 and could not be regarded as a voluntary donation. The Tribunal held that there is no correlation between the disallowance contemplated under Explanation 2 to section 37(1) and the deduction available under section 80G. The mandatory character of CSR expenditure does not disentitle an assessee from claiming deduction under section 80G if the statutory conditions are otherwise satisfied. Accordingly, the disallowance was deleted. (AY. 2020-21).