Approval under section 35(1)(ii) permits research-donation claims to approved institutions subject to audit, accounting and use conditions. Approval under section 35(1)(ii) has been granted to Institute of Scientific Research on Vedas (I-SERVE), Hyderabad, as an 'other Institution' partly engaged in scientific research, subject to conditions: sums must be utilized for scientific research carried out by faculty or enrolled students; the organization must maintain separate books for research receipts and expenditures, obtain and furnish an audit report by a qualified accountant by the return due date; and maintain an auditor-certified statement of donations and amounts applied for research. Approval may be withdrawn for non-compliance or cessation of genuine research.