Section 35(1)(ii) approval requires institutions to maintain separate audited research accounts and obtain regulatory clearance to remain valid. Approval under Section 35(1)(ii) was granted to St. Xavier's College Kolkata Educational Trust as a 'College' partly engaged in research, conditional on utilisation of sums for scientific research, research being conducted by faculty or enrolled students, maintenance of separate books for research receipts and expenditure, audit of those books by a qualified accountant with submission of the audit report to tax authorities by the return due date, and a certified statement of donations and amounts applied for research accompanying the audit report.