Approval under section 35(1)(ii) requires separate research accounts, annual returns and audited accounts to maintain tax recognition. Approval is granted to The Society for the National Institutes of Physical Education and Sports, Patiala, under clause (ii) of sub section (1) of section 35 of the Income tax Act, as an approved institution, subject to conditions: maintain a separate account for research receipts; furnish annual returns of research activities by 30 April; submit audited annual accounts and balance sheet to the prescribed authority and copies to the Commissioner by 30 June; and apply for extension to the tax board three months before expiry, with delayed applications liable to rejection.