Without deploying the source code on the server, can we deploy the application ?

Answer:

Yes. You can deploy your code by using a new precompilation process called ‘precompilation for deployment’.
You can use the aspnet_compiler.exe to precompile a site. This process builds each page in your web application into a single application DLL and some placeholder files. These files can then be deployed to the server.
You can also accomplish the same task using Visual Studio 2005 by using the Build->Publish menu.