Exception to rule 6dd of income tax act'1961

An assesse made cash payment to a Transporter more than prescribed limit Rs. 35000. Assesse argued that Payment made to Vehicle Owner who continue to run his vehicle in all states. He has no bank account. Assessee argued that Payment made by him is as per provisions of Income Tax Act, 1961.
This amount would be allowed or disallowed? If allowed, what are the exceptions?