Transfer of all employees to another entity for a consideration shall be treated as capital gains ?

Capital gains , as you have surrendered your right in the employees. can't be business income as the consideration is of a terminal nature received lumpsum

Has Company A received consideration in cheque ? Then under which section TDS is deducted ( if any)

Note that in my view, employer company have no legal rights over its employees which company can surrender and encash it .

On plain reading of the question, I agree with the second sentence of the Kapadia Pravin, As employees are not a property of employer.

But, If you meant that there is contractual agreement for minimum period of service to be provided by the employee and such right of the employer to avail services is transferred to another person in accordance with terms of the service agreement, Then I have a view of there exist transfer of capital asset(I.e right to avail services of employee) and is chargeable to tax under head capital gains computed in accordance with provisions of sec48

Such right of transferrability of employees (on Premium by employer) is ultra vires the law and not tenable. If employee wishes to join another company it's ok but if not then it's his right.

Such type of bonded labour agreement in the form of a Right on employees and that too saleable right is not tenable.

It is a neither a capital gain nor PGBP. At the most it's IFOS

@ Kapadia Pravin: Yes, Thank you for the reply.
If legally there could not be the circumstance as specified in my earlier reply , It could be treated as income from recommending or referring service workmen and chargeable to tax as brokerage or commission income under head other source as in the given case implies not in the ordinary course of business.

They have deducted TDS under section 194J

@ Kasi Reddy

As a professional what is your judgement

What's narration in bill raised by Company A which is issued to another company ?