Held that Explanation 2 to section 37 was introduced by the Finance (No. 2) Act, 2014 with effect from April 1, 2015 disallows the expenditure incurred on the activities relating to corporate social responsibility referred to in section 135 of the Companies Act, 2013. The assessment year in question was the first year wherein this amendment had taken effect, and prima facie the assessee’s claim appeared to be a bona fide mistake. The assessee had made disclosure about the claim made in the computation of income and during the assessment proceedings had rectified the mistake by filing a revised computation. The mistake in claiming corporate social responsibility expenditure was not pointed by the Assessing Officer. This was not a fit case for levy of penalty under section 271(1)(c) of the Act.  (AY. 2015-16)