COLUMBIA SPORTSWEAR COMPANY vs DIRECTOR OF I.T BANGALORE

The Supreme Court addressed the applicability of Sections 5(2)(b) and 9(1)(i) of the Income Tax Act, 1961 concerning the income tax liability of a foreign company operating a liaison office in India. The Court held that the activities of the liaison office did not constitute a business connection in India, thus no income accrued or arose in India under the specified sections. The ruling clarified the scope of 'business connection' and affirmed the Authority for Advance Rulings' decision, dismissing the appeal.