Approval under Section 35(1)(ii) permits tax-recognized research funding subject to audit and reporting compliance. Approval under Section 35(1)(ii) has been granted to Jnana Prabodhini Samshodhan Sanstha (JPSS), Pune, effective 1-4-2004, in the category of other institutions partly engaged in research, subject to conditions that payments be utilized for scientific research and that the institution carry out social sciences research. The approval requires maintenance of books, annual audit by a defined accountant, timely submission of the auditor's report, and a separate auditor-certified statement of donations and sums applied to research; failure to comply may lead to withdrawal of approval.