Examine in the context of provisions contained under the Income-tax Act, 1961 in each of the following independent cases, and state in brief, whether there exists a business connection in India, so as to bring the income

Existence of Business Connection All income accruing or arising directly or indirectly through or from any business connection in India is chargeable to tax in India as per section 9(1)(i) of the Income Tax Act, 1961 and in the given case the non-resident company Ali & Ali Ltd. is having a liaison office in India, having authority to negotiate and conclude the contracts on behalf of the non-resident company and therefore, as per Explanation 2 of section 9(1)(i) of the Income Tax Act, 1961, there exists a business connection in India and therefore the income of the liaison office located at Hyderabad shall be taxable in India in the hands of Ali & Ali Ltd.