Approval under section 35(1)(ii) for research association requires separate research accounts and annual audited returns before deadlines. Approval under section 35(1)(ii) is granted to the Institute of Road Transport, Madras as an Association for 1 April 1988 to 31 March 1989, subject to conditions: maintain separate accounts for scientific research, furnish annual research returns by 31 May, submit audited accounts and balance sheet to the prescribed authority and tax offices by 30 June, and apply for extension of approval before expiry.