Research institution approval under section 35(1)(ii) requires separate research accounts and strict annual reporting compliance. Approval is granted to the Petroleum Conservation Research Association as an approved institution under section 35(1)(ii) subject to maintaining separate research accounts, furnishing prescribed annual returns by 31st May, submitting audited accounts and balance-sheets to the prescribed authority, the Central Board of Direct Taxes and the Commissioner by 30th June, and applying for extension at least three months before approval expiry.