Hi Surendhar.J,
First of all, please run "dism /online /cleanup-image /restorehealth" to check the health of the system files.
Before we tried to update to Windows 8.1, please ensure the Windows 8 has got the latest updates. There may be some pending updates resulting in the failed upgrade, we could restart the machine and perform an installation again to have a check. It is
recommended to unplug all the external devices before we tried to perform an upgrade.
If the issue persists, we could tried to perform the upgrade in clean boot environment to isolate the third party service conflict issue.
How to perform a clean boot in Windows
https://support.microsoft.com/en-us/kb/929135
Best regards