Scientific research exemption requires separate accounting and annual reporting to the prescribed authority. Approval is granted to the University of Calicut as an institution eligible for the exemption under section 35(1)(ii) of the Income-tax Act, effective from 6th August, 1976, subject to two conditions: maintenance of a separate account for sums received for scientific research, and furnishing an annual return of scientific research activities to the prescribed authority in the prescribed forms by 30th April each year.