Assessment of expenditure related to exempt income: tax officer may apply prescribed method if assessee's claim is unsatisfactory.

The Assessing Officer is empowered to determine the amount of expenditure attributable to income that is not part of total taxable income using a prescribed method where the officer, having regard to the assessee's accounts, is not satisfied with the assessee's claim; the same rule applies when the assessee claims no expenditure was incurred in relation to such non taxable income.

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