ITAT Bangalore deletes Bogus Purchase addition in Section 44AD Case

Assessee is an individual engaged in the business of trading of waste home products filed his return of income as per provisions of section 44AD. Information was received that assessee has received bogus purchase bill of Rs.16,09,692 from one ARS Enterprises. It is alleged that this is a bogus tax invoice wherein false input credit was claimed under GST. When the draft order was passed assessee objected that the addition draft order does not mention the section under which the addition/ disallowance is made. With respect to the details of purchases, it was submitted that the supplier had GST No. & the address of supplier was provided. The assessee also provided the details of purchases. It was submitted that all these purchases have been made in cash. The assessee also objected that these are not bogus purchases as claimed by the ld. AO because GST dept has not at all issued any notice to the assessee for withdrawing input credit. Assessee also explained & submitted proof of screenshot of GST portal. Assessee also challenged that merely information is provided by GST dept, addition cannot be made in the hands of assessee. Also as the assessee has filed a return of income u/s. 44AD, no addition can be made as there is no increase in the sales reported by the assessee. Assessee also submitted a chart showing the purchase of goods from ARS Enterprises. AO rejected the explanation  & made addition of Rs.16,09,692 in 143(3) order. CIT(A) dismissed the appeal.