Yes. It's possible.
Though the trader must have very precise timing for the glitch to work. By doing this, I have successfully cloned an Electivire. Note that the game automatically saves after the Pokemon is received, and to be successful, the sender must turn off while the trading animation is played.
Usually performing the glitch comes at no consequence, however turning the game off while it is saving is the only real threat to your game itself. Since the glitch runs in the game, the actual console cannot be harmed by it.
Also note that if the glitch is performed improperly, you may permanently lose the Pokemon traded. So, alike most other glitches, doing this is risking a lot.