Approval under section 35(1)(iii) requires maintenance of separate research accounts and submission of annual and audited returns. Approval under clause (iii) of sub-section (1) of section 35 of the Income-tax Act is granted to the Indian Law Institute as an Institution for scientific research from 1 4 1986 to 31 3 1989, subject to maintenance of a separate research account, furnishing annual research returns by 30 April, submission of audited annual accounts and balance-sheet to the prescribed authority and the concerned Commissioner by 30 June, and applying to the Central Board of Direct Taxes three months before expiry for extension.