The issue is that when I clear my IE cache and go to google.com then the image logo_plain.png is downloaded as shown in the body column.
The second time I access google.com then the image is not downloaded however a http request is sent and the response 304 is received.
Now my question is
According to the document over here section "Cache-Related Response Headers"
"As you can see, we've improved performance by adding an Expires header, since no conditional HTTP request is made during Session #2."
It says that the browser should not make a conditional Get request if the Expires exist. However in the above case it does so. Does it mean a bug somewhere ( in IE) or is there something else that I did not understand.