What is the remedy

issued the bills and did not showed it in accounts stationg that he follows the cash system? 

is there any provision in cash system to issue bills in advance?

if your friend received the amount in later years, how did he neutralized the debtors ledger?

get in touch with some CA of your city, with detailed accounts and client ledget to seek assistance.

Dear Mr. U S Sharma,

Thank you for advice. In fact, the Bills had to be issued in order to get order from his clients. Unfortunately, his clients showed such bills, unscrupulously, ih their Accounts without the knowledge of my friend. My friend  do not maintain any Debtors Ledger as he does not sell on credit.  Actually he generally takes advance money , only then he supplies goods.What ever money he received upon supply of good, he showed as his turnover in respective Assessment Years, i.e., during AY 2009-10 to 2011-12.. In this way he offered tax on the entire Rs. 4.00 lakh over a period of 3 Years. As such, he maintains that there was no debtors as on 31.03.2008.

His clients now pressurising  my friend to confirm that the Bills were "Genuine" as on 31.03.2008 , so that the client get relief from Income Tax Department , although the fact remains that the goods were not delivered by 31.03.2008.

before supply of goods it should be "proforma invoice" which should be treated as cancelled on presentation of actual bill / invoice. 

invoice can not be issued unless the goods / services right is transferred to buyer. it should be proforma invoice ( wihch is absolute true copy of invoice to be issued in future)

Thanks a lot.