Treatment of preliminary expenses

Preliminary expenses recognised in profit & loss A/C 1st year it's self. even though there is no profit, loss can be carry forwarded to next years.(As per companies act preliminary expenses recognised oly when it is approved by board). 

as per income tax act section 35d written off in  5 equal instalments.  (return filed within due dates loss can be carryforwarded to next years) .
 

Only written off part preliminary expenses will show in expenses side of profit and loss account and balance sheet  will show as balance part in asset side because it is a capital item, so we will not whole preliminary expenses in profit and loss account.