Exemption under section 35(1)(ii): approval subject to use-for-research, separate audited accounts, and certified donation statement. Approval under section 35(1)(ii) is granted to the institution subject to conditions: sums must be used for scientific research; research must be conducted by 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 submitted to the tax authority by the income-tax return due date; and a separately certified statement of donations and amounts applied for research must accompany the audit report. Approval may be withdrawn for failures to maintain accounts, furnish required reports, cease genuine research activity, or otherwise fail to comply with the statutory conditions and rules.