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2016 (3) TMI 317 - AT - Income TaxDisallowance of labour welfare expenses - Held that:- The said expenditure has been incurred towards Corporate Social Responsibility. The said expenditure incurred by the assessee has not been disputed by the Department. The only objection raised is that it is not on account of business expediency. The Corporate Social Responsibility discharged by the assessee shows its sensitivity towards the society at large. Such expenditures need not be measured in the terms of business expediency. The Companies Act, 2013 mandates the companies to contribute 2% of the profit towards Corporate Social Responsibility. The Government also recognizes the need and importance of Corporate Social Responsibility to be discharged by the Corporate houses. Thus, we are of the considered view that the expenditure has to be allowed. - Decided in favour of assessee
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