So finally From which version of SQL server, Identity property is copied into new table eventhough if the query has a GROUP BY clause.
Then next question is it the intended behaviour of sql server or will it be changed in later versions?
These questions might have answered in earlier discussions itself , but i missed in the crowd.
Nothing in the earlier discussions as far as I remember.
Logically, if identity property of a column is preserved then that should be independent of whether that column is subject of a group by clause or not, so I don't expect it to change. But also I don't care whether it changes or not because I never expect to use select into with group by an identity column.