During the year, assessee claimed corporate social responsibility (CSR) expenditure of certain amount incurred by it. Assessing Officer held that as per Explanation 2 to section 37(1) as amended by Finance Act, 2014, any expenditure incurred by an assessee on activities relating to CSR as referred to in section 135 of Companies Act would not be deemed to be an expenditure incurred for purpose of business or profession is not allowable Assessee contended that amount spent by it towards CSR during previous year was over and above its statutory liability under section 135 of Companies Act which could be set off against liability towards CSR of current year and, further, assessee was not required to incur any CSR expenditure. Held that the assessee had not demonstrated as to how it was exempted from incurring such expenditure on CSR as required under section 135 of Companies Act, there was nothing on record to show that assessee had incurred more than required expenditure on CSR in earlier years which could be set-off against liability on CSR of current year.  Matter remanded back to Assessing Officer for verification.  (AY. 2017-18)