Research institution approval under section 35(1)(ii) requires separate research accounts, annual returns, audited accounts, and timely renewal. Approval is granted to the Vivekanand Institute of Medical Sciences as an institution under section 35(1)(ii) subject to conditions: maintain separate accounts for research funds; file prescribed annual returns of scientific research activities by the annual deadline; submit audited annual accounts, income and expenditure statements and balance-sheet to the prescribed authority with copies to central tax authorities and the Commissioner; and apply in advance for extension of approval to the central tax board, as late applications may be rejected. The approval is effective for the notified fiscal period.