Cash payment exceeding rs.20000/-

If cash payment exceeding Rs.20000/- for the purpose of purchasing a fixed asset ( Car) disallowed U/s 43B read with rule 6DD

No , The purchace of fixed asset more than 20,000 in cash is not disallowed u/s 43B. U can claim depreciation on the same.

Cost of assets purchased is not 'any expenditure', which is debited in P & L A/c or claimed otherwise. Depreciation is a statutory allowance allowable on assets owned and used for business or profession.. Therefore,  Section 40A(3) should not be applied.

Rule 6DD does not apply to purchase of Fixed Assets.

40A(3) is not applicable for purpose of movable property. If you find any amendment or section link. please share with us.

In case of immovable property, cash payment in excess of Rs 20,000 is not allowed. If it is made then penalty @ 100% is applicable (w.e.f 01/06/2015).

I agree with Ajeet Singh, sec 40A(3) is not applicable on purchase of fixed assets