Tax approval under section 35(1)(ii) requires research associations to maintain separate accounts and timely annual filings. Approval under section 35(1)(ii) is granted to Man-Made Textile Research Association, Surat as an Association for scientific research, conditional on maintaining a separate account for research receipts, filing annual returns of research activities by 30 April, submitting audited accounts and balance sheet to the prescribed authority and the Commissioner by 30 June, and applying for approval extension at least three months before expiry, with late applications liable to rejection.