We have a function $f(x)=x$ which is defined and is continuous on the set $S$ of all real numbers.
The derivative at point $x$, $$f'(x)=\lim_{h\to 0} \frac{f(x+h)-f(x)}h$$
Using the theorems of limits we can replace the above limit equation by:$$f'(x)=\frac{\lim_{h\to 0}{f(x+h)}-f(x)} {\lim_{h\to 0}h}$$
Since $f$ is continuous at all points $f(x+h) \to f(x)$ as $h\to 0$ so $$f'(x)=\frac{0} {\lim_{h\to 0}h}$$ so $f'(x)=0$.
What is wrong here ??? This is a continuation of my other question Proving the derivative is $0$ at the extremum and all derivatives are $0$.
that part is wrong: "Using the theorems of limits we can replace the above limit equation by:" you need to know both limits (of the denominator and enumarator) exist, are finite, denominator's limit $\not= 0$. in your case $\lim_{h \rightarrow 0} = 0$ so you can't do that.