Research expenditure approval under section 35(1)(ii) requires annual returns, audited accounts, and timely renewal applications. M. L. Shah Research Foundation for Stone Industries is approved as an institution under section 35(1)(ii) in the category 'Association,' subject to maintaining separate research accounts, filing annual scientific-activity returns to the prescribed authority, submitting audited annual accounts and balance-sheet copies to the authority and the Commissioner of Income-tax by 30th June each year, and applying to the Central Board of Direct Taxes for renewal at least three months before expiry; approval is effective from May 13, 1985 to March 31, 1987.