Book adjustment entry passed allowed in it act

This discussion addresses whether it's permissible under the Income Tax Act to adjust a creditor ledger balance with a debtor ledger balance, specifically when a cash loan of Rs. 20 lacs was received from a creditor and Rs. 15 lacs was given to a debtor. The key question is whether the creditor and debtor are the same person, as this would allow for adjustment. If they are different, the possibility of adjustment and implications under Sections 269ST, 269SS, and 40(a) are explored.