Approval under Section 35(1)(ii) recognises research institutions, subject to audit, use of funds for scientific research and reporting. Approval under Section 35(1)(ii) was granted to the Inter-University Centre for Astronomy & Astrophysics, Pune as an institution partly engaged in research, effective 1-4-2004, subject to conditions: sums must be utilised for scientific research; research must be performed by faculty or enrolled students; books of account 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 separate auditor-certified statement of donations received and amounts applied for scientific research must accompany the audit report. Approval may be withdrawn for specified defaults or cessation of genuine research.