Where an assessee, being an Indian company who is resident in India, incurs,  any  Preliminary expenditure can claim deduction in 5 equal installment  over a period of 5 years beginning with the previous year in which the business commence or the previous year in which the extension of the industrial undertaking is completed or the new industrial unit is commences production or operation. Do remember a foreign is not eligible for deduction u/s 35D even if resident.

The Preliminary Expenses means any Expenditure in connection with : -

(i)         preparation of feasibility report;

(ii)        preparation of project report;

(iii)       conducting market survey or any other survey necessary for the business of the assessee;

(iv)       engineering services relating to the business of the assessee: