The Assessing Officer disallowed Corporate Social Responsibility (CSR) expenditure for assessment year 2014-15 by applying Explanation 2 to section 37(1). The Tribunal held that Explanation 2 was inserted with effect from assessment year 2015-16 and had no application to the year under consideration. Since the expenditure was incurred voluntarily for the welfare of employees and the local community without any statutory obligation, it was allowable as business expenditure. (AY. 2014-15).