Approval under Section 35(1)(iii) permits donor deductions where the institution keeps separate accounts and auditor certificates. Approval of Madras School of Economics under Section 35(1)(iii) permits donor deductions for contributions to its research activities for 1-4-2005 to 31-3-2008, subject to conditions: maintain separate accounts for research; submit audited Income & Expenditure accounts for each approved year to the Commissioner/Director of Income-tax (Exemptions) by the return filing due date or within 90 days of the notification; and include an auditor's certificate specifying amounts received for eligible research and certifying that expenditure was for social science or statistical research.