Research institution approval under section 35(1)(ii) requires separate research accounts and timely annual returns and audited accounts. Approval granted to Vision Research Foundation, Madras under section 35(1)(ii) as an 'Association' for scientific research for the period 1-4-1985 to 31-3-1987, subject to maintenance of a separate research account; annual returns of research activities to the prescribed authority by 30 April; submission of audited annual accounts and balance-sheet to the prescribed authority and Commissioner by 30 June; and advance application to the Central Board of Direct Taxes for extension at least three months before expiry, with late applications liable to rejection.