Preliminary expenses written off

NO

In It act the preliminary exp can be write off in 5 years.If in the P&L a/c P.Exn writen off in one year deffered tax liability will arise.

As per AS-26, entity can not recognise any misc./preliminary exps. in balancesheet except it satisfies the intangible assets criteria. As per sec.35D of Income Tax, only company is eligible to claim 1/5th so firm can not have this benefit. So in firm can't claim the exps. It's permanently disallowed so it does not have an implication on Deferred tax as per AS-22.