40(A)(3)

If you were referring to Charitable Trusts, then it's not carry on activities in the nature of business or profession, hence the provision of Profits or Gains from Business or Profession (Section 28 to 44DB) will not apply. Accordingly, it may only have to apply 85% of its total receipts towards furtherment of its Objects and there can be no disallowance u/s 40A(3) eventhough expenditures are in cash.. 

Now, if its a Trust with a profit motive - having no registration u/s 12AA, then all the provisions of PGBP are bound to apply. In that case, disallowance under section 40A(3) shall also apply.