Tek Chand, J.

1. The following four questions of law have been referred to the Full Bench.-

"(1) Whether the provisions of section 2(6A)(d) of the Indian Income-tax Act are ultra vires the Central Legislature?

(2) Whether the accumulated profits amounting to Rs. 4,69,244--13-0 could be deemed to have been distributed on the reduction of the capital from Rs. 25 lakhs to Rs. 15 lakhs within the meaning of section 2(6A)(d) of the Indian Income-tax Act?

(3) Whether the amount of Rs. 11,687-3-0 received by the assessee as security deposit on account of empty bottles could be considered as Capital Gains?

(4) Whether the accumulated profits could be considered as dividend deemed to have been distributed in the assessment year 1955-56 in view of the certificate granted by the Registrar of Companies under S. 61(4) of the Indian Companies Act, 1913 , or could be considered as dividend deemed to have been distributed in the assessment year 1956-57 because the debits of refunds were actually made in the accounts of the share-holders and the refunds were actually granted to the share-holders during the accounting period of the assessment year 1956-57."

2. The assessee is the Punjab Dist