Approval under section 35(1)(ii) for Scientific Research Association requires separate research accounts and annual returns. Designation of Dr. Modi Public Trust Free Eye Hospital, Bangalore as a Scientific Research Association in medical research is granted by the prescribed authority for purposes of clause (ii) of sub section (1) of section 35 read with the income tax rules, subject to two conditions: maintenance of a separate account for sums received for scientific research, and annual submission of prescribed returns of scientific research activities to the Council by 15 May each year; the approval is effective from 15 March 1978 to 14 March 1980.