Gift to be treated as genuine if identity of donors is genuine & source of gift stays explained

Brief Facts of the Case and Question of Law

Brief Facts:

The Appellant-assessee’s children (one minor son and three minor daughters) have received gifts of Rs. 5 Lakhs each. The Assessing officer has treated the same as not genuine and added back in the computation of income from concealed sources under the head “Other Sources”.

The gifts were received by children from four close friends of the assessee. The donors had received back share application money from various Private Limited companies. The donors had made multiple investments in share application money in cash in small quantities not exceeding Rs. 20000/-

Question of Law:

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