Approval under Section 35(1)(ii) requires separate research accounts, audited income expenditure filing and auditor certification for donor deductions. Diabetic Association of India approved as an institution partly engaged in research for purposes of donor deduction, subject to conditions: maintain separate accounts for research; submit audited income and expenditure accounts for research activities to the tax authority by the return due date or within the prescribed period; and furnish an auditor's certificate specifying amounts received eligible for donor deduction and certifying that expenditures were for social science/statistical research.