Approval under section 35(1)(ii) permits tax recognition for research donations, conditional on audit, separate accounts and genuine research. Nature Conservation Foundation, Mysore is approved under section 35(1)(ii) read with rules 5C and 5E as an 'other Institution' partly engaged in scientific research from 1 April 2006, subject to conditions: research receipts must be used for scientific research; research must be conducted by faculty or enrolled students; separate books of account for research receipts and expenditures must be maintained and audited by a qualified accountant with the audit report furnished to the tax authorities by the income tax return due date; and a separate auditor certified statement of donations and amounts applied to research must be maintained and furnished.