Depreciation in case fixed asset purchased in cash

Dear Friends,

I am dealing one case where assessee has purchased Particular Fixed Asset in cash exceeding Rs. 20000/-. Assessee has received Assessment notice which disallows depreciation on that particular asset u/s 40A(3) due to the reason that it has been purchased in cash.

Request you to please quote any case law which supports non disallowance of depreciation u/s 40A(3)