[ 71.Factors to be considered in judging comparability.-
(1) The following factors shall be considered in judging the comparability of an uncontrolled transaction with the international transaction under the different methods as mentioned in rule 70:—
(a)the characteristics of property, services or intangible properties involved in the transaction:
(i) the case of tangible property: physical features, quality and reliability, availability, volume and timing of property transferred;
(ii)in the case of services provided: the nature and extent of the services;
(iii) in the case of intangible property: the type of intangible, the form of transaction, the expected benefits, the duration of protection, the degree of protection, etc;
(b)the functions performed, the risks assumed and the assets employed, especially the functions, risks and assets that are materially significant in determining the price or margin in relation to the international transaction;
(c) the contractual terms (whether or not such terms are formal or written) dictating the allocation of responsibilities, risks and benefits between enterprises involved in the international transaction;
(d) economic circumstances, that affect the international transaction and uncontrolled transactions, including geographic location, the size and level of markets; the extent of competition in the market, the availability of substitute goods and services, the purchasing powers of consumers, government orders and policies and the timing of the transaction;
(e) Any other factors that have material effect on the international transaction and uncontrolled transaction.
(2) An uncontrolled transaction shall be deemed to comparable to an international transaction if:
(i) there are no material differences in respect of cost, price or margin between the transactions being compared or between the enterprises undertaking such transactions; or
(ii) reasonably accurate adjustments can be made to eliminate any material differences in the transactions.
(3) In analysing the comparability, data relating to the relevant financial year (in which the international transaction has been entered into) shall be considered.
Provided that data relating to a period prior to the financial year may also be considered if such data bears such facts which could have an influence on the analysis of comparability.]Added F. A. 2012