(1)Where the Assessing Officer, having regard to the accounts of the assessee of a previous year, is not satisfied with-(a)the correctness of the claim of expenditure made by the assessee; or(b)the claim made by the assessee that no expenditure has been incurred,in relation to income which does not form part of the total income under the Act for such previous year, he shall determine the amount of expenditure in relation to such income in accordance with the provisions of sub-rule (2).
