Group company fund transfer

X & Y are both Private limited group companies. We have sold raw materials to both the companies.But at the time of payments, sometimes x paid us by cheque y's due from x's account. and sometimes the reverse.

Thus in our books, we have receivable from x of say 1 lac and payable to y of 1 lac.

can we settle the account by simple journal entry between x & y.?

x...Cr....1 lac

y...Dr.....1 lac

Is it permissible by company act/ income tax?