create PhoneCallReceiver .java
import android.content.BroadcastReceiver;
import android.content.Context;
import android.content.Intent;
import android.telephony.PhoneStateListener;
import android.telephony.TelephonyManager;
import android.util.Log;
import android.widget.Toast;
public class PhoneCallReceiver extends BroadcastReceiver {  
@Override
public void onReceive(Context context, Intent intent) { 
    TelephonyManager telephony = (TelephonyManager) context.getSystemService(Context.TELEPHONY_SERVICE);
    PhoneCallStateListener customPhoneListener = new PhoneCallStateListener(context);
    telephony.listen(customPhoneListener, PhoneStateListener.LISTEN_CALL_STATE);
}}
now create PhoneCallStateListener .java 
import java.lang.reflect.Method;
import android.content.Context;
import android.content.Intent;
import android.content.SharedPreferences;
import android.media.AudioManager;
import android.os.Bundle;
import android.preference.PreferenceManager;
import android.telephony.PhoneStateListener;
import android.telephony.TelephonyManager;
import android.widget.Toast;
import com.android.internal.telephony.ITelephony;
public class PhoneCallStateListener extends PhoneStateListener {    
private Context context;
public PhoneCallStateListener(Context context){
    this.context = context;
}
@Override
public void onCallStateChanged(int state, String incomingNumber) {  
    SharedPreferences prefs=PreferenceManager.getDefaultSharedPreferences(context);
    switch (state) {
        case TelephonyManager.CALL_STATE_RINGING:       
              String block_number = prefs.getString("block_number", null);
            AudioManager audioManager = (AudioManager) context.getSystemService(Context.AUDIO_SERVICE); 
            //Turn ON the mute
            audioManager.setStreamMute(AudioManager.STREAM_RING, true);                 
            TelephonyManager telephonyManager = (TelephonyManager) context.getSystemService(Context.TELEPHONY_SERVICE);
            try {
                Toast.makeText(context, "in"+block_number, Toast.LENGTH_LONG).show();
                Class clazz = Class.forName(telephonyManager.getClass().getName());
                Method method = clazz.getDeclaredMethod("getITelephony");
                method.setAccessible(true);
                ITelephony telephonyService = (ITelephony) method.invoke(telephonyManager);     
                //Checking incoming call number
                System.out.println("Call "+block_number);
                if (incomingNumber.equalsIgnoreCase("+91"+block_number)) {
                    //telephonyService.silenceRinger();//Security exception problem
                     telephonyService = (ITelephony) method.invoke(telephonyManager);
                     telephonyService.silenceRinger();
                    System.out.println(" in  "+block_number);
                    telephonyService.endCall();
                }
            } catch (Exception e) {
                Toast.makeText(context, e.toString(), Toast.LENGTH_LONG).show();
            }
            //Turn OFF the mute     
            audioManager.setStreamMute(AudioManager.STREAM_RING, false);
            break;
        case PhoneStateListener.LISTEN_CALL_STATE:
    }
    super.onCallStateChanged(state, incomingNumber);
}}
Now in src create this package com.android.internal.telephony now in this package Right Click ->  New -> File now give name ITelephony.aidl and paste this code
package com.android.internal.telephony; 
interface ITelephony {      
  boolean endCall();     
  void answerRingingCall();      
  void silenceRinger(); 
}
NOTE: Code is tested in Android 2.2 (Froyo),2.3 (GingerBread)