Assessee had incurred various expenditure including registration charges, rent of premises, travelling expenses of its personnel and other miscellaneous expenses to set up a branch office in UAE in connection with its existing business. Assessee was already in business of sales in UAE and only for facilitation of its business had set up a branch office. Therefore, expenditure incurred by assessee was a revenue expenditure which cannot be considered as preliminary and preoperative expenses. ( AY.2011-12)