Research organisation approval under section 35(1) conditions tax exempt donations on strict accounting, audit and utilisation requirements. Approval is granted to AcSIR as an approved organization under clause (ii) of sub-section (1) of section 35 read with Rules 5C and 5E, permitting receipts for scientific research subject to conditions: sums must be utilised for scientific research; research must be carried out through faculty or enrolled students; separate books of account for research receipts and expenditures must be maintained and audited by a qualified accountant with the audit report furnished to the tax authority by the return due date; and a separate auditor certified statement of donations received and amounts applied for research must accompany the audit report.