Research institute approval under section 35(1)(ii) requires separate accounts, audited annual returns, and timely renewal applications before expiry. Approval under Section 35(1)(ii) recognizes the Institute of History of Medicine and Medical Research for research-related tax purposes subject to conditions: maintain separate accounts for research receipts; file annual returns of scientific research activities by 31 May; submit audited annual accounts, income and expenditure statements and balance-sheet to the prescribed authority, the Central Board of Direct Taxes and the concerned Commissioner by 30 June; and apply for extension at least three months before approval expiry.