Approval under section 35(1)(ii) permits tax recognition of a research institution subject to annual returns and audited accounts. The Electrical Research and Development Association, Bombay is approved as an approved institution for research-linked tax recognition under section 35(1)(ii) and rule 6, subject to maintaining separate research accounts, filing annual returns of scientific research activities by 30 April, and submitting audited accounts and balance-sheet to the prescribed authority and the Commissioner of Income-tax by 30 June. The approval is effective from April 1, 1984 to March 31, 1987.