"Yes the "Passenger would have to log the flight" to keep a record. However the entry in their log book would record the usual place and time of departure and place and time of arrival as well as the number of take-off's and landings that this person completed as "sole manipulator of the controls". Make a note in the remarks column about what was completed."
If the "passenger" did this, the other person in the aeroplane would now be the passenger, rendering the flight illegal! If the other person is an instructor qualified to give night instruction then it would be logged as DUAL!
The giving of instrument instruction is interesting, under national rules a FI could give instruction for the basic IF exercises on an IMC course but not for instrument approaches (applied IF) Under JAR-FCL it is little different. A CPL instructor does not have to have the applied IF restriction removed i.e. in JAA terminology he does not have to be a IRI. However, he has not been taught to teach instrument approaches or limited panel and so cannot teach these skills.
No instruction for any part of the IR can be given by a person who has not had the applied IF restriction removed because they would not be qualified to be employed in a FTO conducting such instruction.