Instead of trying to generate all permutations, I would check if all source values will be present in the target and that both sources and targets contain the same number of values.
This is a bit verbose in XSLT 1.0, but still:
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
<xsl:output method="xml" version="1.0" encoding="UTF-8" indent="yes"/>
<xsl:param name="delimiter" select="' '"/>
<xsl:variable name="source" select="'A B C'"/>
<xsl:variable name="target" select="'B A C'"/>
<xsl:variable name="every-source-in-target">
<xsl:call-template name="every-source-in-target">
<xsl:with-param name="source" select="$source"/>
<xsl:with-param name="target" select="$target"/>
</xsl:call-template>
</xsl:variable>
<xsl:variable name="count-source" select="string-length(translate($source, translate($source, $delimiter, ''), ''))" />
<xsl:variable name="count-target" select="string-length(translate($target, translate($target, $delimiter, ''), ''))" />
<xsl:template match="/">
<result>
<xsl:if test="$every-source-in-target='true' and $count-source=$count-target ">MATCH</xsl:if>
</result>
</xsl:template>
<xsl:template name="every-source-in-target">
<xsl:param name="source"/>
<xsl:param name="target"/>
<xsl:param name="delimiter" select="' '"/>
<xsl:variable name="token" select="substring-before(concat($source, $delimiter), $delimiter)" />
<xsl:choose>
<xsl:when test="not(contains(concat($delimiter, $target, $delimiter), concat($delimiter, $token, $delimiter)))">
<xsl:value-of select="false()"/>
</xsl:when>
<xsl:when test="contains($source, $delimiter)">
<xsl:call-template name="every-source-in-target">
<xsl:with-param name="source" select="substring-after($source, $delimiter)"/>
<xsl:with-param name="target" select="$target"/>
</xsl:call-template>
</xsl:when>
<xsl:otherwise>
<xsl:value-of select="true()"/>
</xsl:otherwise>
</xsl:choose>
</xsl:template>
</xsl:stylesheet>
, : , "A B B C" "B A A C" . , , IMHO, :
XSLT 1.0
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
xmlns:exsl="http://exslt.org/common"
extension-element-prefixes="exsl">
<xsl:output method="xml" version="1.0" encoding="UTF-8" indent="yes"/>
<xsl:param name="delimiter" select="' '"/>
<xsl:variable name="source" select="'A B C'"/>
<xsl:variable name="target" select="'B A C'"/>
<xsl:variable name="sorted-source">
<xsl:call-template name="sort-list">
<xsl:with-param name="list" select="$source"/>
</xsl:call-template>
</xsl:variable>
<xsl:variable name="sorted-target">
<xsl:call-template name="sort-list">
<xsl:with-param name="list" select="$target"/>
</xsl:call-template>
</xsl:variable>
<xsl:template match="/">
<result>
<xsl:if test="$sorted-source=$sorted-target">MATCH</xsl:if>
</result>
</xsl:template>
<xsl:template name="sort-list">
<xsl:param name="list"/>
<xsl:variable name="tokens">
<xsl:call-template name="tokenize">
<xsl:with-param name="text" select="$list"/>
</xsl:call-template>
</xsl:variable>
<xsl:for-each select="exsl:node-set($tokens)/token">
<xsl:sort select="." data-type="text" order="ascending"/>
<xsl:value-of select="."/>
<xsl:if test="position()!=last">
<xsl:value-of select="$delimiter"/>
</xsl:if>
</xsl:for-each>
</xsl:template>
<xsl:template name="tokenize">
<xsl:param name="text"/>
<xsl:param name="delimiter" select="' '"/>
<xsl:variable name="token" select="substring-before(concat($text, $delimiter), $delimiter)" />
<xsl:if test="$token">
<token>
<xsl:value-of select="$token"/>
</token>
</xsl:if>
<xsl:if test="contains($text, $delimiter)">
<xsl:call-template name="tokenize">
<xsl:with-param name="text" select="substring-after($text, $delimiter)"/>
</xsl:call-template>
</xsl:if>
</xsl:template>
</xsl:stylesheet>