Approval under Section 35(1)(ii) conditions institute recognition on separate research accounts, annual returns, audited filings and timely renewal. Approval under clause (ii) of sub section (1) of section 35 read with rule 6 recognizes INYS Medical Research Society as an approved institute for research, subject to maintaining separate research accounts, filing annual scientific returns by 30th April, submitting audited accounts and balance sheet to the prescribed authority and Commissioner by 30th June, and applying to the Central Board of Direct Taxes for extension at least three months before approval expiry.