Approval under section 35(1)(ii) for research institution requires separate accounts, annual returns and audited financial submissions. Approval under section 35(1)(ii) was granted to Forbes Research Centre, New Delhi, as an 'Association' on condition that it maintain a separate account for scientific research receipts; furnish annual returns of research activities by 31st May; submit audited annual accounts, income and expenditure statements and balance-sheet to the prescribed authority and specified tax offices by 30th June; and apply for extension to the central tax administration and exemption directorate before approval expiry.