Addition for Gift recd not warranted if Assessee proves identity, credit-worthiness and genuineness of donor

The issue for consideration before is whether the gift received by the assessee is genuine or not? As per the AO, gift of such a substantial amount was not justified to a non relative/ no blood relation and the creditworthiness of the donor is not adequate. The CIT(A) held that, in fact, the Assessing Officer has in his remand report clearly stated that “The donor has confirmed in his statement the fact of giving gift to the appellant during the year under consideration. The donor has also stated reasons for giving the gift in the statement. Further, the donor has also ascertained his credit...