Taxability of deposit certificates

1. Firstly, deposit certificates are issued by banks that are authorized by the RBI. A company as such cannot issue a deposit certificate. 
2. And certificate of deposits is issued by banks for holding customers deposit and in return provide interest at a predetermined rate. 
3. Hence, make sure whether the company has actually issued a deposit certificate to its shareholders. Because companies do get deposits like a chit fund for 11 months and issue a certificate to this effect. However, even the same is not considered a deposit certificate. 
Please correct me if the above solution has an alternative view. 

Company is a pioneer company in textile industry and it distributed deposit certificates (without interest) to its shareholders (preference as well as equity shareholders)
Company has accumulated profits of rs. 25,00,000 Holding of shareholder is 10%
He received deposit certificates of rs. 500,000
What is the taxability of shareholder?
1. To the extent of Rs. 250,000 OR
3. Exempt

1. I don’t find the concept behind issuing a deposit certificate unless there is some kind of deposit made by the shareholders. 
2. Whether this certificate was provided to the shareholders on account of any payment made by the shareholder? 

Fixed deposit is governed by specific statute and is controlled by Sec 76 and 76A.