The assessee claimed deduction u/s 80IA on the basis of a concession agreement entered into with a consortium of private entities for operating, maintaining and developing the cargo terminal at Delhi Airport. The consortium was formed pursuant to a bidding process conducted by Airports Authority of India (AAI). The AO allowed the deduction. The PCIT invoked S.263 holding that the mandatory condition of S.80IA(4)that the agreement must be with the Central/State Government, local authority or statutory body was not fulfilled since the consortium was not a statutory body merely because AAI delegated certain functions to it. Tribunal set aside the revision order. On appeal the High Court held that the Tribunal erred in ignoring these statutory preconditions; the concession granted by the consortium could not qualify for S80IA benefits and the AO’s order was therefore erroneous and prejudicial to the Revenue. Revision order of PCIT restored.(AY. 2011-12)