Allowing the appeal of the assessee the  Tribunal held that payment made for purchase of software was not royalty as per definition of ‘royalty’ under DTAA between India and USA, Germany and Singapore, since term ‘royalty’ under DTAA with these different countries had not been amended. Law could not compel a person to do something which was impossible to perform. Even if definition of ‘royalty’ under the Act stand amended but assessee was not liable to withhold tax on payments made to Non-resident entities on account of purchase of software. As on date of payment, assessee was not liable to withhold tax u/s 195 thus no liability could be fastened on assessee to deduct tax at source on basis of subsequent amendments made in the Act in relation to payments made to Non-resident, on date anterior to date of amendment, though retrospectively applied, Clarificatory nature of amendment to section 9(1)(vi) was  applied.  (AY. 2007-08)