Held, that looking into the nature of expenses incurred by the assessee coupled with the fact that the Department had not brought anything on record to show that any capital asset of enduring nature was brought into existence, the claim of the assessee on expenses incurred on preliminary drilling expenditure was to be allowed. Held, that the expenditure qualified as revenue expenditure and may be allowed as revenue expenditure. The other sundry expenses may also be allowed as revenue expenditure since no capital asset of enduring nature was brought into existence. However, expenses towards purchase of furniture and fixtures for the new office had been incurred for purchase of capital assets and were in the nature of capital expenses. These could not be allowed as revenue expenditure in the hands of the assessee. However, the Assessing Officer was to allow depreciation on such fixed assets in accordance with law after carrying out the necessary verification. Held that the expenses had been incurred primarily to bring into existence a new capital asset and did not qualify as being revenue in nature. They were not allowable. However, the assessee was entitled to claim depreciation on such expenses. Expenditure on repairs and maintenance of  leased premises is allowable as  revenue expenditure. (AY. 2007-08, 2008-09)