Research approval under section 35(1)(ii) enables tax-exempt recognition subject to separate accounts, annual returns and audited reports. Approval under section 35(1)(ii) was granted to the National Institute of Rock Mechanics (Kolar) for the year 1 April 1990 to 31 March 1991, subject to conditions: maintain a separate account for scientific research receipts; furnish annual returns of scientific research activities to the Secretary, Department of Scientific and Industrial Research by 31 May each year; and submit audited annual accounts showing income, expenditure, assets and liabilities to the Director-General of Income-tax (Exemptions), the Secretary, Department of Scientific and Industrial Research, and the relevant Commissioner/Director by 30 June each year.