Approval under Section 35(1)(ii) permits donor deduction subject to audited research accounts and auditor certification. Approval is granted to M/s Vittal Mallya Scientific Research Foundation under Section 35(1)(ii) as an institution partly engaged in research, subject to conditions: maintain separate accounts for research; submit audited Income & Expenditure accounts for research to the Commissioner/Director (Exemptions) by the return due date; and provide an auditor's certificate specifying amounts received eligible for donor deduction and certifying that expenditure was for statistical research.