Proper posting of a return can create a rebuttable presumption of timely filing and defeat penalty exposure.

Posting an income-tax return by certificate of posting to the correct office within the prescribed time raises a rebuttable presumption of due delivery and timely filing. The presumption is supported by section 27 of the General Clauses Act and section 114 of the Indian Evidence Act, and is sufficient unless the Revenue proves otherwise. On that basis, the return was treated as filed in time, and the penalty under section 271(1)(a) was not sustained.

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Issues: Whether posting the return by certificate of posting within the prescribed time was sufficient evidence of filing within time so as to negate penalty under section 271(1)(a) of the Income-tax Act, 1961.

Analysis: The return was shown to have been duly posted to the correct income-tax office within time. On that evidence, the ordinary presumption arising from proper despatch through the post office applied. The Court relied on the principle that a properly addressed and prepaid article posted in the ordinary course gives rise to a rebuttable presumption of receipt and service, supported by section 27 of the General Clauses Act and section 114 of the Indian Evidence Act. In the absence of proof to the contrary, the assessee's evidence was sufficient to establish timely filing.

Conclusion: The return was treated as filed within time, and the cancellation of penalty was upheld in favour of the assessee.

Ratio Decidendi: Proper posting of a duly addressed return within the prescribed time raises a rebuttable presumption of delivery and filing, which is sufficient unless displaced by contrary proof.

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