ITunes could not connect to this iPhone. You do not have permission.

Question

iTunes could not connect to this iPhone. You do not have permission.
Upgraded iPhone 5 to IOS v7.1 last week and now my Macbook Air(OS X 10.9.2) will NOT recoginize it and continually gives the error message "iTunes could not connect to this iPhone. You do not have permission." when plugged into iTunes (11.5.5)
Called Mac service they told me to restore phone to factory settings - done NO change
Tried different USB cables -NO change - plugged ito friends MacBook - it recognizes the iphone; plugged in froends iPhone to my MBA and iTunes recognozes it.
Took to Mac Service Shop - they told me to reinstall iTunes - done NO change
Back to Mac Service shop - told me to reinstall Maverick - done No Change
H E L P
I now have a factory restored iPhone with NONE of my contacts, messages or apps on it - USELESS
A backup of the iPhone sits on my Macbook Air but it won't recognize the iPhone so that is also USELESS
HELP
PLEASE any suggestions? This is really frustrating OBVIOUSLY there is a bug on the MBA and/or Maverick that is blocking this iphone ONLY
H  E L  P

Answer 1

Please read this whole message before doing anything.
This procedure is a test, not a solution. Don’t be disappointed when you find that nothing has changed after you complete it.
Step 1
The purpose of this step is to determine whether the problem is localized to your user account.
Enable guest logins* and log in as Guest. Don't use the Safari-only “Guest User” login created by “Find My Mac.”
While logged in as Guest, you won’t have access to any of your personal files or settings. Applications will behave as if you were running them for the first time. Don’t be alarmed by this; it’s normal. If you need any passwords or other personal data in order to complete the test, memorize, print, or write them down before you begin.
Test while logged in as Guest. Same problem?
After testing, log out of the guest account and, in your own account, disable it if you wish. Any files you created in the guest account will be deleted automatically when you log out of it.
*Note: If you’ve activated “Find My Mac” or FileVault, then you can’t enable the Guest account. The “Guest User” login created by “Find My Mac” is not the same. Create a new account in which to test, and delete it, including its home folder, after testing.
Step 2
The purpose of this step is to determine whether the problem is caused by third-party system modifications that load automatically at startup or login, by a peripheral device, by a font conflict, or by corruption of the file system or of certain system caches.
Disconnect all wired peripherals except those needed for the test, and remove all aftermarket expansion cards, if applicable. Start up in safe mode and log in to the account with the problem. You must hold down the shift key twice: once when you boot, and again when you log in.
Note: If FileVault is enabled, or if a firmware password is set, or if the boot volume is a Fusion Drive or a software RAID, you can’t do this. Ask for further instructions.
Safe mode is much slower to boot and run than normal, with limited graphics performance, and some things won’t work at all, including sound output and Wi-Fi on certain models. The next normal boot may also be somewhat slow.
The login screen appears even if you usually log in automatically. You must know your login password in order to log in. If you’ve forgotten the password, you will need to reset it before you begin.
Test while in safe mode. Same problem?
After testing, reboot as usual (not in safe mode) and verify that you still have the problem. Post the results of Steps 1 and 2.