IDENTITY is a property which gives auto-incremental value to a column whenever a new record is inserted. You have to set the IDENTITY property with a column while creating a table.
Check following blog post to know about all IDENTITY columns: http://sqlwithmanoj.wordpress.com/2012/05/03/all-about-identity-columns/[/url]
You can also use IDENTITY() function with "SELECT INTO" statement.
Check following blog post for more info: http://sqlwithmanoj.wordpress.com/2011/12/15/using-identity-function-with-select-statement/[/url]
More link: http://sqlwithmanoj.wordpress.com/2011/07/08/reseed-tables-identity-column-value/[/url]