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TMI Blog2011 (10) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... iction as the said power cannot be exercised in respect of a block assessment order. 2. As the question of law involved in both these appeals is one and the same, they are heard and disposed of by this common order. To have a factual background we have set out the facts in ITA No. 2314/2005. 3. The premises of one M/s Trishul Enterprises and one Sri T.S. Chandrashekar was searched on 12.12.1995 under Section 132 of the Act. During search they found incriminating material in respect of the wife of Sri T.S. Chandrashekar, 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 gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , unless an approval is accorded by the Commissioner the block assessment order has no validity. Therefore, by according such approval the Commissioner has become a party to the said order and before according approval he is expected to apply his mind and find out whether the order is in accordance with law and then only he can accord approval. Even if it is an administrative approval he cannot by virtue of Section 263 exercise revisional jurisdiction against the correctness of the approval accorded to a block 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... odifying the assessment or cancelling the assessment and directing a fresh assessment." 10. In the light of the aforesaid statutory provisions, we have to examine whether by virtue of the power of revision conferred on him, whether the Commissioner can revise an order passed under Section 158BC read with Section 158BG. Section 158BC deals with procedure for block assessment. It provides, where any search has been conducted under Section 132 or books of account, other documents or assets are 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 conducte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... until permission is obtained. But permission subsequently obtained may all the same validate the previous Act. Approval of a person means that, and only that, which he has, with full knowledge, approved. Approve. To accept as good or sufficient for the purpose intended. To pronounce good. To accept as good or sufficient for the purpose intended; to confirm authoritatively. Approved. When one of the parties to a bargain writes 'approved' at the end of the draft of the agreement and 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nclude and shall be deemed always to have included all records relating to any proceedings under this Act available at the time of examination by the Commissioner. 17. Therefore, this power conferred on the Commissioner is in the nature of supervisory power. If he finds that the order passed by the Assessing Officer is erroneous and also prejudicial to the interest of the Revenue, after examining the record or any proceedings under the Act to rectify such error and to protect the 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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