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I strongly believed that pending transactions can not be approved and included into a block without mining, isn't it? But now, I'm into confusion about this. One of my customers said that there should not be any mining processes on a private test network.

So, for example, if I preallocate Ether in Genesis block and run the network without mining, will I be able to send transactions, create contracts?

Please, clarify that.

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pending transactions can not be approved and included into a block without mining, isn't it?

Yes. Mining is required to arrange transactions into blocks and add blocks to the blockchain.

if I preallocate Ether in Genesis block and run the network without mining, will I be able to send transactions, create contracts?

You can pre-allocate ether using the genesis block. However, even with this ether, you can only initiate transactions and create contracts. To confirm/validate those transactions and to deploy contracts to the blockchain, you need to have at least one miner.

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