I have solved myself_
Changed the query to this--
DECLARE @projectId int
SELECT @projectId = ProjectId FROm Project with(nolocK) WHERE ProjectNo = '61N24643'
SET IDENTITY_INSERT DC1..DMAuditHistory ON
INSERT INTO DC1..DMAuditHistory (ProjectID,ProposalID,SolutionID,RequestID,AuditFieldTypeID,SrNo,Dateaudited,
AuditFieldvalue,DrawingStatus,CommerceId,DeleteFlag,AddedBy,DateAdded,ChangedBy,dateChanged,GlobalUniqueID)
SELECT * FROM DMAuditHistory with(nolock) WHERE ProjectId = @projectId
SET IDENTITY_INSERT DMAuditHistory OFF
GO