Commercial’s Disallowance of Expenses by Ram Dutt Sharma – 1st Edition 2026.

The disallowance of business and professional expenditure remains one of the most heavily litigated and consequential areas of Indian direct tax law. Disallowance of Expenses (Edition 2026), published by Commercial Law Publishers, serves as an essential barrier against tax assessment shocks. Authored by Ram Dutt Sharma, a veteran of the Income Tax Department, this book decodes the statutory framework governing the allowability of expenses under The Income Tax Act, 2025, as amended by The Finance Act, 2026. It is a mandatory desk reference for tax professionals preparing returns, managing audits, or arguing disputes.

Decoding Allowable vs. Prohibited Expenditure

The book systematically breaks down the complex rules separating legitimate business expenses from those that invite immediate disallowance:

• The Foundational Principles: Distinguishes Capital vs. Revenue expenditure, personal vs. non-business expenses, and payments not incurred wholly and exclusively for the business.

• Statutory & Policy Blocks: Outlines expenditures explicitly prohibited by law or opposed to public policy.

• Exempt Income & Depreciation: Clarifies the highly scrutinized rules surrounding expenses relating to exempt income and inadmissible depreciation claims.

The Compliance Traps (TDS, Cash & Related Parties)

A significant portion of corporate tax litigation stems from procedural failures rather than illegitimate expenses. This manual provides actionable guidance on:

• Cash Payment Restrictions: Exact limits and the resulting disallowances for violating them.

• TDS Non-Compliance: The severe disallowances triggered by the non-deduction or non-payment of Tax Deducted at Source.

• Related-Party Scrutiny: How to defend related-party payments against claims of being excessive or unreasonable.

• Employee Welfare: Ensuring compliance with statutory dues to secure deductions for employee welfare expenditures.

Who Should Buy This Book?

• Chartered Accountants & Tax Consultants: An indispensable tool for ensuring flawless computation, return preparation, and surviving scrutiny assessments.

• Corporate Tax Teams & Finance Heads: Essential for setting internal company policies on vendor payments, petty cash, and TDS compliance to protect corporate deductions.

• Advocates & Tax Litigators: Provides the statutory backing and insider perspective required to argue complex income-tax disputes before appellate authorities.

About the Author

Ram Dutt Sharma

Ram Dutt Sharma brings an unparalleled “insider” perspective to tax literature. Joining the Income Tax Department in 1983, he retired as an Income Tax Officer in 2018 after an illustrious 35-year career.

Having worked across all major wings of the Department in the North-West Region—including Assessment Units, Special Ranges, the TDS Wing, and Investigation Wings—he understands exactly how assessing officers think and operate. A highly respected faculty member, he frequently lectures at the National Academy of Direct Taxes (NADT) Regional Campuses in Chandigarh and Bhopal, and has addressed numerous seminars organized by the Income Tax Department, the ICAI, and various trade associations.

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