Section 35(1)(ii) approval requires separate research accounts, audited research statements and auditor certification of donor-eligible receipts. Approval is granted to M/s. Lokmanya Medical Research Centre as an institution partly engaged in research, subject to maintaining separate accounts for research; submitting, for each approved year, audited Income & Expenditure accounts for the research activities to the tax exemption authority by the due date of filing return or within ninety days of the notification, whichever is later; and enclosing an auditor's certificate specifying donor-eligible research receipts and certifying that the expenditure was for scientific research.