Dismissing the appeal the Court held that from a perusal of the relevant clauses of the agreement, it was clear that the assessee was a joint venture company and under the agreement had been granted a non-transferable licence to manufacture and assemble etc  Even after the expiry of 11 years from the date of commercial production, the assessee was entitled to continue the manufacture and sale of the  licence products.  Accordingly Under the agreement, the assessee had incurred an expenditure which gave it an enduring benefit, and therefore, the expenditure had to be treated as capital expenditure. (AY.2008-09)