Let's analyze each statement to determine its correctness regarding the mechanism of muscle contraction:

Statement A: It is initiated by a signal sent by CNS via sensory neuron.

This statement is incorrect because the signal for muscle contraction is sent by the central nervous system (CNS) via a motor neuron, not a sensory neuron. Sensory neurons carry information from sensory receptors to the CNS, whereas motor neurons carry signals from the CNS to muscles.

Statement B: Neurotransmitter generates action potential in the sarcolemma.

This statement is correct. When a motor neuron releases the neurotransmitter (typically acetylcholine) at the neuromuscular junction, it binds to receptors on the muscle cell membrane (sarcolemma) and generates an action potential.

Statement C: Increased Ca$^{++}$ level leads to the binding of calcium with troponin on actin filaments.

This statement is correct. When the action potential travels along the sarcolemma and into the muscle via T-tubules, it triggers the release of Ca$^{++}$ from the sarcoplasmic reticulum. The increase in Ca$^{++}$ levels leads to calcium binding with troponin on actin filaments.

Statement D: Masking of active site for actin is activated.

This statement is incorrect. The active sites on actin are initially masked by the protein tropomyosin. When Ca$^{++}$ binds to troponin, it causes a conformational change that moves tropomyosin away from the active sites on actin, thus exposing them for myosin binding. Therefore, masking is deactivated rather than activated.

Statement E: Utilising the energy from ATP hydrolysis to form cross bridge.

This statement is correct. The hydrolysis of ATP provides the energy necessary for the myosin heads to attach to actin, forming cross-bridges, and to perform the power stroke which leads to muscle contraction.

Based on this analysis, the correct statements are B, C, and E.

The most appropriate answer is Option A (B, C and E only).