Scientific research association approval under section 35(1)(ii) requires separate research accounts and annual audited returns. Approval is granted to the institution as a scientific research association under section 35(1)(ii), subject to maintaining a separate account for research receipts, furnishing an annual return of scientific research activities by 31st May in the prescribed form, and furnishing an annual audited statement of accounts by 31st May while sending a copy to the concerned Commissioner of Income-tax.