Sec 40(a) expenses above 20000/- in cash

A Company Has a Branch In Himachal pradesh its Reg. office is in pune, it is starting manufacturing products at h.p branch for that they have incurred quiet a lot of expenditure and some payments have been made ao above 20000/- in cash by a person there in h.p of the company. thje Company has paid that person the amount by RTGS to his account,and then he has made the payments to the party in cash in himalchal prades...are these expenditure allowed as per Sec 40(a) Expences.. pls Reply Quickly....