Administrative approval under Section 158BG need not involve a prior hearing before block assessment approval is granted.

Approval under Section 158BG of the Income-tax Act was treated as an administrative safeguard, not an adjudicatory step requiring a hearing. The High Court held that the language and scheme of the provision were inconsistent with importing natural justice at the stage of according approval, so the Commissioner was not obliged to confront the assessee before granting approval for the proposed block assessment. The contention that a prior opportunity of hearing was mandatory was rejected, and the issue was decided against the assessee.

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Issues: Whether the Commissioner was required to afford the assessee an opportunity of hearing before granting approval under Section 158BG of the Income-tax Act, 1961.

Analysis: Approval under Section 158BG was treated as an administrative safeguard rather than an adjudicatory exercise. The language and scheme of the provision were held inconsistent with importing the principles of natural justice at the stage of according approval. The Commissioner was not required to confront the assessee before granting such approval for the proposed block assessment.

Conclusion: The contention that prior opportunity had to be given before approval under Section 158BG was rejected, and the point was decided against the assessee.

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