Approval under Section 35(1)(ii) requires separate research accounts and annual audited reports for institution recognition. Approval under Section 35(1)(ii) is granted to VMA Oilseeds Research and Development Institute, Bombay for the period 1 January 1985 to 31 December 1985, subject to maintaining separate research accounts, filing annual returns of scientific research by 30 April, submitting audited accounts and balance sheet to the prescribed authority and Commissioner by 30 June, and applying to the Central Board of Direct Taxes for extension at least three months before expiry.