cash payment

Yes you can purchase by paying cash there will be  no disallowances because you will treat it as assest

Probable question of disallowance U/S 40A(3) doesnot arise since its a Capital expenditure.

The company can purchase the same on cash.

Hi joseph,

Sec 40A(3) of income tax is applicable even if an assessee purchases a depreciable assets. For instance, if Mr X purchases a car for business purposes and payment (say, rs. 4.5 lacs) is made in cash, depreciation will be disallowed by virtue of section 40A(3). (ref para 49.3 of ready reckoner point 5)