Benefit Of S. 40(a)(ia) TDS Disallowance Controversy Must Go To The Assessee: ITAT Chennai

ITO vs. M/s.Theekathir Press (ITAT Chennai)

S. 40(a)(ia) TDS Disallowance: View in favour of the assessee should be followed

The assessee paid an amount without deducting TDS. The AO held that as there was no TDS, the deduction for the amount could not be allowed u/s 40(a)(ia). However, the CIT(A) reversed the AO on the ground that the word “payable” in s. 40(a)(ia) did not apply to amounts that had already been “paid” during the year. On appeal by the department to the Tribunal HELD dismissing the appeal:

There is a judicial controversy on whether s. 40(a)(ia) applies to amounts that have already been “paid” or it is confined to amounts that are “payable” as at the end of the year. The Special Bench in Merilyn Shipping and Transports 16 ITR (Trib) 1 (Vizag) and the Allahabad High Court in Vector Shipping Services have taken the view that s. 40(a)(ia) applies only to amounts remaining “payable” at the end of the previous year and does not apply to amounts already “paid” before the close of the relevant previous year. However, the Calcutta High Court in Crescent Export Syndicates & Md. Jakir Hossain Mondal and the Gujarat High Court in Sikandarkhan N.Tunvar have taken a contrary view that even amounts already “paid” have to be disallowed u/s 40(a)(ia). In such circumstances, the rule of Judicial Precedence demands that the view favourable to the assessee must be adopted as held by the Supreme Court in CIT vs. Vegetable Products Ltd 88 ITR 192. Following the said fundamental rule declared by the Supreme Court, the judgment of the Allahabad High Court in Vector Shipping which is in favour of the assessee has to be followed and it has to be held that disallowance u/s 40(a)(ia) applies only to amounts “payable” and not to amounts “paid”.

Note: In Pradip J. Mehta 300 ITR 231 (SC) it was held that the benefit of doubt should invariably go to the taxpayer. This has been followed in Eskay Designs (attached). Contrast with the view taken in Rishti Stock and Shares (ITAT Mumbai) and the Department’s Circular No. 10/DV/2013 dated 15.12.2013

Sec. 153A/ 153C: ITAT Explains Important Principles Of Search Assessments

V. K. Fiscal Services Pvt. Ltd vs. DCIT (ITAT Delhi)

S. 153A/ 153C: Important principles of law relating to search assessments explained

Pursuant to a search u/s 132 conducted on the premises of another person, the AO issued a notice u/s 153C upon the assessee and thereafter passed an assessment order. The assessee claimed that the said assessment was not valid on the ground that (a) no books of account of the assessee were found in the premises of the other person, (b) though the AO of the searched person & the assessee was the same it was not shown that the satisfaction was recorded in the course of the assessment of the searched party and not of the assessee, (c) as no assessment was pending on the date of search, the assessment could be made only for the incriminating material found in the search & (d) as the satisfaction was recorded on 23.7.2010 and the relevant AY was 2011-12, the AO could issue a notice u/s 153C only for six preceding AYs relevant to this AY (i.e. AY 2005-06 to 2010-11) and the notice issued for AY 2004-05 was barred by limitation. HELD by the Tribunal:
(a) & (b) the satisfaction u/s 153C has to be recorded by the AO of the searched person and not by the AO of the assessee. Even if the AO of both parties is the same, he has to go through the formality of separately recording satisfaction and the record has to show that satisfaction was recorded in the assessment of the searched party. Also s. 153C proceedings can be initiated only if books of account etc which are seized from the searched party belong to the assessee. A mere confirmation of account or a copy of the audited accounts or a copy of the return of income does not constitute “books of account” for purposes of s. 153C (DSL Properties (Del) & Therapeutic India (Del) followed);
(c) the scope of assessment u/s 153A & 153C depends on whether the original assessment proceedings are pending or concluded. If a s. 143(1) intimation is passed and the time limit for issue of a s. 143(2) notice has lapsed, the assessment is concluded. In such cases, the s. 153A/ 153C assessment has to be based only on incriminating material found in the search (All Cargo Global 137 ITD 287 (Mum)(SB), Pratibha Industries 141 ITD 151 (Mum) & Gurinder Singh Bawa followed);
(d) S. 153A/ 153C permits the AO to issue a notice for six AYs preceding the AY in which the search took place. As the satisfaction was recorded on 23.7.2010, the relevant AY was 2011-12 and the AO could issue a notice u/s 153C only for six preceding AYs relevant to this AY (i.e. AY 2005-06 to 2010-11). The notice issued for AY 2004-05 is barred by limitation.

Taxability Of Anonymous Donations Received By Charitable Trusts: ITAT Explains Law

Sunder Deep Educational Society vs. ACIT (ITAT Delhi)

S. 11: Law on taxability of voluntary donations as “anonymous donations” u/s 115BBC or as “cash credit” u/s 68 in hands of charitable trust explained

The assessee, a charitable institution, received donations of Rs. 3.55 crore. It maintained a record indicating the name and address of the donors. It claimed that the said donations had been applied for charitable purposes as per s. 11 and nothing was assessable. The AO conducted a test check by sending letters to the donors. To the extent of donations aggregating Rs. 1.96 crore, the letters came back undelivered or were not replied to. The AO held that as the confirmations were not received, the said donations were “anonymous donations” and assessable to tax u/s 115BBC. He held that alternatively, the said sum was assessable as a “cash credit” u/s 68 as the identity, genuineness and credit worthiness of the alleged donors was not proved. On appeal, the CIT(A) held that the said donations could not be treated as “anonymous” u/s 115BBC though he upheld the AO’s stand that the said sum was assessable as a “cash credit” u/s 68. On further appeal by the assessee to the Tribunal HELD allowing the appeal:
(i) S. 115BBC which assesses “anonymous donations” does not apply because the assessee has maintained a record of the identity indicating the name and address of the person making the contribution;
(ii) S. 68 seeks to assess cash credits as income. However, when the non-corpus voluntary donations are already disclosed as income and applied for charitable purposes, s. 68 has no application. The fact that the complete list of donors was not filed and the donors were not produced does not mean that the assessee was seeking to introduce unaccounted money into the trust;
(iii) U/s 12(1) voluntary donations received without a direction that they shall form part of the corpus are deemed to be income derived from property held for charitable purposes and have to be applied towards the objects of the trust to the extent of 85%. If that is done, the donations are not assessable as income (Keshav Social & Charitable Foundation 278 ITR 152 (Del) followed)
See also CAG Exposes Defects In Law And Procedure Of Taxation Of Charitable Trusts, The Law And Procedure Of Taxation Of Charitable Trusts and CBDT Circular on charitable institutions and mutual organisations

S.14A + Rule 8D Disallowance: Onus On AO To Show Direct Nexus Between Exempt Income And Expenditure

DCIT vs. Allied Investments Housing P. Ltd (ITAT Chennai)

S. 14A & Rule 8D: Onus is on AO to show how assessee’s claim is incorrect. AO has to show direct nexus between expenditure & exempt income. Disallowance cannot be made on presumptions


In AY 2009-10 the AO made a disallowance of Rs 58 lakhs u/s 14A read with Rule 8D. The assessee claimed that the disallowance was not permissible on the grounds that (i) the AO had not recorded any satisfaction as to the correctness of the assessee’s claim that it had not incurred expenditure of more than 2% of the dividend income earned, (ii) it had not made any fresh investment during the year and the dividend was received from an unlisted company out of an investment made in an earlier year & (iii) the AO had not pointed out any direct nexus between the interest expenditure incurred and the exempt income earned during the year. The CIT(A) accepted the claim & restricted the disallowance to Rs 50,000 On appeal by the department to the Tribunal HELD dismissing the appeal:

(i) A disallowance u/s 14A read with Rule 8D cannot be made without recording satisfaction as to how the assessee’s calculation of s. 14A disallowance is incorrect. It is a prerequisite that before invoking Rule 8D, the AO must record his satisfaction on how the assessee’s calculation is incorrect. The AO cannot apply Rule 8D without pointing out any inaccuracy in the method of apportionment or allocation of expenses. Further, the onus is on the AO to show that expenditure has been incurred by the assessee for earning tax-free income. Without discharging the onus, the AO is not entitled to make an ad hoc disallowance. A clear finding of incurring of expenditure is necessary. No disallowance can be made on the basis of presumptions, (ii) the mere fact that some interest expenses were incurred cannot be the reason for disallowance unless the nexus between the expense and the exempt income is established, (iii) the assessee did not make any fresh investment during the year which could generate exempt income in forthcoming years, (iii) the exempt income earned during the year comprised of dividend received from an investment made in an earlier year, (iv) the interest expenditure of the year is not directly related to the earning of exempt income & (v) the AO has not pointed out any direct nexus between the interest expenditure incurred and the exempt income earned during the year (Hero Cycles Ltd 323 ITR 518 P&H) & Godrej and Boyce 328 ITR 81 (Bom) followed)

Third Member, ITAT, Resolves Controversy On S. 14A + Rule 8D Disallowance For Shares Held As Stock-in-trade

D. H. Securities Pvt. Ltd vs. DCIT (ITAT Mumbai) (Third Member)

S. 14A & Rule 8D disallowance applies to tax-free securities held as stock-in-trade


The assessee claimed that as it was engaged in the business of trading in shares, its main object is to earn profit on purchase and sale of shares and not to earn dividend income from such shares. It claimed that the accrual of tax-free dividend on such shares was merely incidental to the holding of shares as stock-in-trade and that no disallowance could be made u/s 14A and Rule 8D. It also claimed that though the assessee had not incurred any direct or indirect expenditure to earn the said dividend, the AO had made the disallowance on a presumptive basis. The Division Bench referred the dispute to a Third Member in view of the difference of opinion between the Benches. Before the Third Member, the assessee relied on CCI Ltd 71 DTR (Kar) 141 , India Advantage Securities, Yatish Trading etc in which the law had been laid down that s. 14A & Rule 8D does not apply to securities held as stock-in-trade. The department relied on Godrej & Boyce Manufaturing Co 328 ITR 81 (Bom) (where it was held that Rule 8D is mandatory) and Daga Capital 117 ITD 169 (Mum) (SB) (where it was held that s. 14A applies to stock-in-trade). HELD by the Third Member:

It is accepted by both parties that the assessee is a dealer in shares and that the shares were held by it as stock-in-trade. The issue under appeal is squarely covered by the principles laid down in Godrej & Boyce, Dhanuka & Sons 339 ITR 319 (Cal), American Express Bank and Damani Estates & Finance in which the issue has been elaborately considered. The argument that the judgement of the Karnataka High Court in CCI Ltd is the solitary High Court judgement on the point and it should be followed is not correct because the issue has also been considered by the Calcutta High Court in Dhanuka & Sons. Also, while CCI Ltd has not considered the jurisdictional High Court judgement in Godrej & Boyce, Dhanuka & Sons has duly considered Godrej & Boyce in taking the view that s. 14A/ Rule 8D applies to shares held as stock-in-trade. Accordingly, disallowance u/s 14A can be made in conformity with law even where dividend income has been earned on shares held as stock-in-trade.

Sec. 271(1)(c) Penalty: Law On Discharge Of Onus In View Of SC Verdict In MAK Data Explained

CIT vs. M/s. Gem Granites (Karnataka) (Madras High Court)

 

S. 271(1)(c) penalty cannot be levied if the assessee discharges the primary burden by a cogent explanation and the AO is unable to rebut it. MAK Data (SC) explained

Pursuant to a search conducted u/s 132 it was revealed that the assessee had “on-money” transactions in real estate dealings. The assessee accepted the “on-money” but claimed that it was taxable only on completion of the projects under the ‘completed contract method‘. The assessee’s claim was rejected by all the authorities including the High Court. In the s. 271(1)(c) penalty proceedings, the assessee claimed that there was a mistake in the entries regarding the sale of flats to J.B. Exports in as much as the rate at which the property was shown as sold to the said party was much higher than the rate at which the property was sold to other parties. The AO and CIT(A) rejected the claim but the Tribunal accepted it on the basis that the huge difference in the rate of sale of the flat recorded in other cases and in the case of J.B. Exports supported the assessee’s contention that there may be a mistake in recording the rate. It held that as the department had failed to prove concealment without any doubt, penalty could not be imposed. On appeal by the department to the High Court, HELD dismissing the appeal:

Merely because the assessment proceedings have been confirmed does not automatically mean that penalty u/s 271(1)(c) is justified. Unless the case is strictly covered by s. 271(1)(c), penalty cannot be invoked. For sustaining penalty, the bona fide explanation of the assessee must be looked at so that the contumacious conduct of the assessee for the purpose of sustaining the penalty would be taken as condition that is the main requirement u/s 271(1)(c). In Mak Data P. Ltd vs. CIT the Supreme Court held that when a difference is noticed by the AO between the reported and assessed income, the Explanation to Section 271(1) raises a presumption of concealment and the burden is on the assessee to show otherwise, by cogent and reliable evidence. When the initial onus placed by the Explanation has been discharged by the assessee, the onus shifts on the Revenue to show that the amount in question constituted undisclosed income. On facts, the onus cast upon the assessee has been discharged by giving a cogent and reliable explanation. If the department did not agree with the explanation, the onus was on the department to prove that there was concealment of particulars of income or furnishing inaccurate particulars of income. Such onus has not been discharged by the department and so the Tribunal’s finding cannot be interfered with (Dharmendra Textiles Processors 306 ITR 277 (SC) & Reliance Petroproducts 322 ITR 158 (SC) referred)

S. 132B(4)(b)/ 240/ 244A: Assessee is entitled to interest on cash appropriated during search even if refund is directed in appeal proceedings

Chironjilal Sharma HUF vs. UOI (Supreme Court)

Pursuant to a search conducted u/s 132, cash of Rs. 2.35 lakhs was recovered. The AO passed an order u/s 132(5) in which he calculated the tax liability and appropriated the seized cash. An assessment order was also passed to the same effect. The AO’s order was finally set-aside by the Tribunal and it became final. Consequently, the assessee was refunded the amount of Rs. 2.35 lakhs with interest from 4.3.1994 (date of last of the regular assessments by the AO) until the date of refund. The assessee claimed that he is entitled to interest u/s 132B(4)(b) of the Act for the period from the expiry of period of six months from the date of order u/s 132(5) to the date of regular assessment order. In other words, as the order u/s 132(5) was passed on 31.5.1990, six months expired on 30.11.1990 and the last of the regular assessments was done on 4.3.1994, the assessee claimed interest u/s 132B(4)(b) from 1.12.1990 to 4.3.1994. HELD by the Supreme Court:

The department’s argument that the refund of excess amount is governed by s. 240 and that s. 132B(4)(b) has no application is not acceptable. S. 132B(4)(b) deals with pre-assessment period and there is no conflict between this provision and s. 240 or for that matter s. 244(A). The former deals with pre-assessment period in the matters of search and seizure and the later deals with post assessment period as per the order in appeal. The department’s view is not right on the plain reading of s. 132B(4)(b) and the assessee is entitled to simple interest at the rate of 15% per annum u/s 132B(4)(b) from 1.12.1990 to 4.3.1994. The interest shall be paid within two months from today.

BUDGET HIGHLIGHTS 2013

The King’s Speech

Hinting towards global economic slowdown of growth rate of 3.2%; the FM cited towards a tough Budget. On the contrary he also mentioned that currently India is the only country behind China and Indonesia when it comes to growth rate throughout the world. And if continued to grow at projected rate, only China will grow faster than India.

The FM brought up his biggest concern of Current Account Deficit i.e. the difference between the income and expenditure of the country. This is mainly because of heavy imports of oil, coal and love for gold. And the only way to counter this deficit is to attract foreign investment via FII, FDI or ECB (External Commercial Borrowings).  Thus he highlighted on the aspect of good governance stating that “Doing business in India must be seen as easy, friendly and mutually beneficial.” Investment is done only when there is lack of doubt and ambiguity. Thus, the FM maintained and repetitively insisted on stable tax rates, clear communication of policies and laws and avoiding hurdles of regulatory and administrative burdens.

                                FM during the allocation of budgets touched on 3 main areas which in his opinion require very high attention, and thus touching the hearts of many viz. Woman empowerment, Youth empowerment and Poor empowerment.                                                                                                                                         

Direct Taxes

·        Currently the tax to GDP ratio is 5.5% which was once 11.9% in 2007-08. Thus tax collection needs to be increased.

Corporate Taxes

Basic tax rate and education cess rate remain unchanged.

·        Surcharge

§  Domestic Companies : Surcharge at the rate of 5% whose income is more than ` 1 crore (` 10 million)

-          Surcharge at the rate of 10% whose income is more than ` 10 crore

§  Foreign Companies : Surcharge increased from 2% to 5%

§  Increase in surcharge from 5% to 10% on Dividend Distribution Tax

·        Investment Allowance

Manufacturers are encouraged to invest in Plant and Machinery. Additional 15% depreciation to company which invests more than 100 crore in P&M between 01.04.2013 to 31.03.2015

·         Loophole of avoiding dividend distribution tax by way of buy back of share blocked. TDS proposed at the rate of 20% for buy back of shares by unlisted companies

·         TDS rate on payments by way of Royalty and fees for technical services to non-residents increased from 10% to 25%.

·         The ‘eligible date’ for power sector projects increased from 31.3.13 to  31.3.14

·         Securitisation Trust exempted from tax. Tax to be levied only at the time of distribution of income. Tax @30% for companies and @25% for Individuals/HUF

Personal Taxes

·         No changes in personal tax slabs; because even small increase in basic exemption limit will result in escape of lakhs of taxpayers from the tax net

·         Still, bare benefit is given to taxpayers who are within the tax bracket of `2 lacs to `5 lacs. These taxpayers will get a ‘tax credit’ i.e. direct reduction in tax of `2,000. The tax credit is estimated to benefit 1.8 crore taxpayers

·         Home Loan benefit :

-          First home buyers who avail home loan in FY 2013-14 up to `25 lacs will get an additional deduction of interest of `1,00,000

-          This is over and above the existing limit of `1.5 lacs

-          If the limit is not fully utilized, the balance may be carried forward in FY 2014-15

·         Surcharge is back for super rich:

Citing only 42,800 persons have reported per year income more than `1 crore recently, Surcharge to be levied at the rate of 10% on income above `1 crore.

Indirect Taxes

·         The indirect tax to GDP ratio has fallen down to 4.4% which is reason for concern for the FM. In none of the large developing countries the ratio is so low

·         Basic rates remain the same, i.e. Excise duty at 12%, Service tax at 12% and Customs duty at 10%

Custom Duty

·         Period of concession to specified parts of electric and hybrid vehicles extended to 31.3.15 to boost environment friendly vehicle manufacturing

·         Duty reduced from 7.5% to 5% on machinery used in manufacture of leather and leather goods

·         Reduced from 10% to 2% on pre-forms of precious and semi-precious stones

·         Duty on de-oiled rice bran oil cake totally withdrawn

·         Duty on set top boxes increased from 5% to 10% to boost domestic production

·         On raw silk imports, increased from 5% to 15%

·         Motor Vehicles from 75% to 100%, Motor cycles of engine capacity of 800cc or more from 60% to 75% and Yachts and similar vessels from 10% to 25%

                                 

·         Duty-free limit of import of jewellery like Gold increased to `50,000 for male passenger and `100,000 in case of female passenger

Excise Duty

·         Ships and vessels, handmade carpets, cotton fabric exempted from excise duty

·         Duty increased by 18% on cigarettes, cigars, cheroots and cigarillos

·         SUVs other than registered as taxis will now bear excise duty of 30% instead of 27%

·         Duty on Marble doubled from `30/sq.mtr to `60/sq.mtr.

·         Mobile phones pricing more than 2,000/- will now bear 6% duty

Service Tax

·         Like stated earlier in his speech the importance of stable tax regime the negative list introduced last year has not been tampered much. Only 2 services are added to the negative list viz. Vocational courses offered by institutes affiliated to State Council of Vocational Training and Testing activities relating to agri produce.

·         Service tax to be levied on all  Air conditioned restaurants unlike before

·         FM mentioned that around 17 lacs Service tax payers are registered with the Government, but only 7 lacs of them file their Returns and thus it is important to motivate such service tax payers as it is administratively not feasible to identify and collect taxes from such defaulters. Thus, the Service tax Voluntary Compliance Encouragement Scheme has been introduced where from 01.10.2007 defaulters can file their returns and pay due taxes. Interest, penalty and other consequences will be waived

·         Abatement reduced from 75% to 70% for homes/flats having carpet area of more than 2,000sqft

Other Highlights of the Budget

·         TDS at the rate of 1% on sale of immovable property above 50 lacs. Agricultural land excluded.

·         India’s first of women, by women, for women Public Sector Bank to be opened

·         Nirbhaya Fund to be setup for women safety and empowerment

·         Small and Micro Enterprises (SMEs) to get extended benefit for 3 years even after reaching at higher category

·         Commodity Transaction Tax (CTT) introduced on non-agri products at the rate of 0.01%

·         Transfer Pricing safe harbor rules to be declared in near future

·         General Anti Avoidance Rule (GAAR) postponed to April 2016 in modified version assured of preserving its basic purpose

·         Direct Tax Code (DTC) based on Best International Practice to be introduced soon

·         Goods and Service Tax (GST) to be implemented soon hoping for unanimous consent of State Governments

Quotable Quotes

·         “Hope inspires courage.”  In light of convergence to GST with support of State Finance Ministers

·         “Any economist will tell us what India can become. We are the tenth largest economy in the world. We can become the eighth, or perhaps the seventh largest by 2017. By 2025, we could become a $ 5 trillion economy, and among the top five in the world. What we will become depends on us and on the choices that we make. Swami Vivekananda, whose 150th birth anniversary we celebrate this year, told the people: “All the strength and succour you want is within yourself. Therefore, make your own future.”

·         What clearly eye discerns as right, with steadfast will And mind unslumbering, that should man fulfill

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Income Tax Rates in India for FY 2013-14 i.e. Assessment Year (AY) 2014-15 and TAX CALCULATOR

Income Tax Rates applicable for Individuals, Hindu Undivided Family (HUF), Association of Persons (AOP) and Body of Individuals (BOI) in India is as under:

Assessment Year 2014-15, Relevant to Financial Year 2013-14 

For Individuals below 60 years age (including Woman Assessees):

Income	Tax Rate
Upto 200,000	Nil
200,000 to 500,000	10% of the amount exceeding 200,000
500,000 to 1,000,000	Rs.30,000 + 20% of the amount exceeding 500,000
1,000,000 & above	Rs.130,000 + 30% of the amount exceeding 1,000,000

 For Individuals aged 60 years and above but below 80 years (Senior Citizen):

Income	Tax Rate
Upto 250,000	Nil
250,000 to 500,000	10% of the amount exceeding 250,000
500,000 to 1,000,000	Rs.25,000 + 20% of the amount exceeding 500,000
1,000,000 & above	Rs.125,000 + 30% of the amount exceeding 1,000,000

 
For Individuals aged 80 years and above (Very Senior Citizen):

Income	Tax Rate
Upto 500,000	Nil
500,000 to 1,000,000	20% of the amount exceeding 500,000
1,000,000 & above	Rs.100,000 + 30% of the amount exceeding 1,000,000

 
Tax Credit: Rs. 2,000 for every person whose income doesn’t exceed Rs. 500,000. (i..e Rs.2,000/- tax will be reduced from the tax liability. It means if originally the tax was Rs. 30,000/-, then it would be reduced by Rs.2,000/-, the net tax liability being Rs.28,000/-)

Surcharge on Income Tax: 10% of the Income Tax payable, in case the total taxable income exceeds Rs.10,000,000. Surcharge shall not exceed the amount of income that exceeds Rs.10,000,000.

Education Cess: 3% of Income Tax plus Surcharge (Education cess @2% and Secondary and Higher Secondary Education cess @1%)

SLABS FOR BUSINESS

The following Income Tax Slab Rates shall be applicable for the Assessment Year 2014-15 i.e Previous Year 2013-14. Education Cess @ 2% and SHEC @1% shall be levied on the Income Tax so computed.

1. For Co-operative Society

Income Tax Slabs	Income Tax Rates
Where the Total Income does not exceed Rs. 10,000	10% of the Income
Where the Total Income exceeds Rs. 10,000 but does not exceed Rs. 20,000	20% of the Amount by which it exceeds Rs. 10,000
Where the Total Income exceeds Rs. 20,000	30% of the Amount by which it exceeds Rs. 20,000

2. For Firms, Local Authority and Domestic Company

Income Tax Slabs Rates wont apply in this case and Tax @ 30% flat shall be computed on the Total Income. Surcharge shall not be levied on Income of Firms and Local Authorities but shall be levied on the Total Income Tax of Domestic Companies @ 5% provided that the Total Income of the Domestic Company exceeds Rs. 1 Crore (i.e. Rs. 10 millions)

TAX CALCULATOR: http://law.incometaxindia.gov.in/DIT/Xtras/taxcalc.aspx