In case of transfer of business, the transferor will be liable for the payment of tax, interest and penalty

Yes, the transferor and the transferee shall be jointly and severally, be liable to wholly or to the extent of such transfer, to pay the tax, interest or penalty which was due for the period prior to the date of transfer. Such tax liability, interest and penalty may be determined either prior to the date of transfer or thereafter.

(ICAI FAQ PUBLICATIONS 06-09-2017 Liability in case of transfer of business : FAQ NO. 1)