Section 9 has been amended from time to time expanding definition of royalty on retrospective basis. Though this may bring non resident to charge of tax but cannot put the deductor to any harm for failing to deduct tax on the basis of latin maxim that the law does not demand the impossible so as to excuse the alleged disobedience of law.
The High Court in (2023] 21 ITR-OL 343 (Cal) upheld the deletion of the disallowances under section 40(a)(ia) on account of professional and consultancy charges, advertisement publicity and sales promotion charges paid to non-residents and advertisement expenses considering the settled law that the “person” mentioned in section 195 of the Act cannot be expected to do the impossible, namely, to apply the expanded definition of “royalty” inserted by Explanation 4 to section 9(1)(vi) of the Act at a time when such Explanation was not actually and factually in the statute.