Scientific research exemption: approval granted to institute subject to conditions on utilisation, accounts, audit and reporting. The Karnataka State Sericulture Research and Development Institute is approved as an Institution under clause (ii) of sub-section (1) of section 35, read with Rules 5C and 5E, from 1-4-2003, subject to conditions: funds must be used for scientific research carried out by faculty or enrolled students; separate books of account for research receipts and expenditure must be maintained and audited by a qualified accountant with the audit report furnished to the tax authorities by the return due date; and a certified statement of donations received and sums applied to research must accompany the audit report. Approval may be withdrawn for failures to comply or if research is not genuine.