Research institution approval under section 35(1)(ii) requires project-limited activities, separate research accounts, and annual compliance filings. Approval of Batra Medical Research Centre, New Delhi as an approved institution under the tax provision for research expenditure is granted subject to conditions: maintenance of separate accounts for research receipts and expenditure; restriction to listed research programmes with prior clearance required for others; annual returns of research activities by 30 April; audited accounts and balance-sheet submission by 30 June to the prescribed authority and Commissioner of Income-tax; and advance application for extension before expiry.