Can Company (Pvt Ltd) follow cash basis system

company-follow-cash-accounting-system-tax-purposes-section-209(3)-companies-act-mandates-accrual system

there is a case record of this in DCIT Vs Stup Consultants Pvt. Ltd. You can find the details in tax guru 

The consistency concept also avoids many conflicts and luckily there is no concept as of now which prohibits any transaction.