TaxTMI 
TaxTMI 
2011 (10) TMI 475
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....drashekar, namely Smt. Annapurnamma. Therefore, a notice under Section 158BC read with Section 158BD of the Act was issued to her. After hearing the assessee, on 28.2.1997 a draft assessment order was passed. As required under Section 158BG the draft block assessment order was submitted to the Commissioner of Income Tax for his approval. This fact is clear from the last sentence of the block assessment order where it has been stated that the said order has been passed with the previous approval of the Commissioner of Income Tax under Section 158BG of the Act. 4. After passing of the said order, the Commissioner initiated proceedings under Section 263 of the Act on the ground the assessment order was erroneous and prejudicial to the interest of the revenue. The assessee filed a statement of objections to the show cause notice issued and contended the Commissioner has no jurisdiction to initiate proceedings under Section 263 of the Act in respect of the block assessment orders. On merits also she contested the proceedings. However, over-ruling her objections the revisional authority exercised power under Section 263 and set aside the assessment order and stated the assessing offic....
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.... assessment order on the ground that it is prejudicial to the revenue. Therefore, he submits the order passed by the Tribunal is in accordance with law and does not call for any interference. 8. The substantial question of law that arise for our consideration in these appeals is as under : - "Whether the Commissioner can exercise his revisional jurisdiction under Section 263 of the Act in respect of block assessment order passed by the assessing authority under Section 14B when the Commissioner has accorded his approval to such order?" 9. Section 158BG as it was inserted read as under:- "158BG. Authority competent to make the block assessment - The order of assessment for the block period shall be passed by an Assessing Officer not, below the rank of an Assistant Commissioner : Provided that no such order shall be passed without the previous approval of the Commissioner". The proviso underwent an amendment with effect from 1.10.1996. It reads as under : - "Provided that no such order shall be passed without the previous approval of the Commissioner, or Director, as the case may be". Subsequently, with effect from 1.1.1997 the said provision underwent, substa....
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....re requisitioned under Section 132A, in the case of any person, then, the Assessing Officer shall proceed to determine the undisclosed income of the block period in the manner laid down in Section 158BB and the provisions of Section 142, sub-sections (2) and (3) of Section 143, Section 144 and Section 145 shall, so far as may be, apply. On determination of the undisclosed income of the block period in accordance with this Chapter, shall pass an order of assessment and determine the tax payable by him on the basis of such assessment. Proviso to Section 158BG categorically declares that no such order shall be passed without the previous approval of the Commissioner in respect of searches conducted after 30th day of June, 1995 but before the first day of January 1997 and for the period subsequent to 1st of January 1997 without the previous approval of the Joint Commissioner or the Joint Director. Such an approval is not required under the Act in respect of the assessment orders passed under the Act. This is a special provision. Unless the previous approval is obtained under Section 158BG the block assessment order to be passed by the assessing authority has no value in the eye of law.....
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....adds his signature, he thereby makes the draft a binding contract, and does not merely express approval of its form after the manner of conveyances." 12. Black's Law Dictionary, 6th Edition, defines 'approval' to mean, an act of confirming, ratifying, assenting, sanctioning or consenting some act or thing done by another. In the context of an administration act, the word 'approval' in our opinion does mean anything more than confirming, ratifying, assenting, sanctioning or consenting. 13. The Apex Court in the case of Ashok Kumar Sahu v. Union of India AIR 2006 SC 2879, explaining the meaning of approval, held as under: "The expression approval presupposes an existing order. Acceptance means communicated acceptance. A distinction exists between the expressions 'approval' and 'acceptance'. Whereas in the latter, an application of mind on the part of the competent authority is sine qua non, approval of an order only envisages statutory entitlement. Approval of an order is required as directed by the statute. It can be given a retrospective effect. Even valid contract comes into being only after the offer is accepted and communicated. Whereas services of an employee are dispe....
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....e interest of the Revenue he can exercise the said power, because, the Commissioner becomes aware of such erroneous orders prejudicial to the revenue after looking into the record. But, if he has looked into the record, applied his mind and agreed with the order of the Assessing Authority, this power of revision under Section 263 is not available to him after according approval to such order. Even though Section 158BH expressly provides that all other provisions of this Act shall apply to assessment made under this Chapter, the opening words make it clear that "save as otherwise provided under this chapter". Therefore, the other provisions are not attracted automatically. If before according approval, if the Commissioner has undertaken scrutiny of the records, gone through the order and then accorded approval, in the absence of specific provision in the Act providing for exercise of revisional jurisdiction, even against such orders, the power under Section 263 cannot be exercised. Therefore, from the aforesaid provision, the intention is very clear. In fact, after realizing this difficulty, Section 158BG was amended by conferring power of according previous approval on the Joint Co....