Scientific research approval requires use-of-funds, audited separate accounts, and auditor-certified donation statements for tax recognition. Diabetic Association of India, Mumbai is approved under section 35(1)(ii) read with Rules 5C and 5E subject to conditions: donations must be used for scientific research conducted by faculty or enrolled students; separate books of account for research funds must be maintained and audited by a qualified accountant with the audit report furnished by the return due date; and a separate auditor-certified statement of donations received and amounts applied to research must accompany the audit report. The Central Government may withdraw approval for failures to maintain accounts, furnish the audit report or donation statement, cessation or non-genuineness of research activities, or non-compliance with statutory conditions.