The petitioners were trustees of a trust, American School of Bombay Education Trust (ASB). The ASB was set-up solely for the purpose of education and not for the purpose of profit. The Trustees held the Trust Fund solely for the purpose of education. ASB had applied for an exemption under section 10(23C)(vi) and had been granted under section 10(22) for assessment years 1998-99 to 2001-02 and 2006-07 to 2026-27. Accordingly the petitioners sought exemption for intermediate years 2002-03 to 2005-06 on ground that institution shall exist solely for the purpose of providing education and not for the purpose of profit. The application was rejected on grounds that part of income was received by SAIESF directly, it was not possible to verify expenses incurred by SAIESF and funds repatriated by SAIESF were not invested in accordance with section 11(5) of the Act. On writ allowing the petition the Court held that SAIESF was set-up in USA, wholly and exclusively for charitable and educational purposes and was formed for sole purpose of assisting and supporting assessee-trust and entire expenses incurred by SAIESF were towards educational purpose of assessee-trust, exemption claimed by assessee under section 10(23C)(vi) could not have been denied; revenue could not have enquired about receipts and expenses made by SAIESF outside country merely because it was transferring its surplus or even a portion thereof to assessee-trust in India. Petition was allowed. (AY. 2002-03, 2003-04, 2004-05, 2005-06)