Regarding the use of credentials for office365, we haven't tested that specific usecase, so it's currently not supported. It might work, so please feel free to try, but it's not guaranteed it will.
The easiest solution should be to create a separate user for TeamCity in JIRA to use it.
Hi Abhinand,
I'm going to assume you already know how to integrate regular JIRA, if not, here are the details: https://confluence.jetbrains.com/display/TCD10/JIRA
Regarding the use of credentials for office365, we haven't tested that specific usecase, so it's currently not supported. It might work, so please feel free to try, but it's not guaranteed it will.
The easiest solution should be to create a separate user for TeamCity in JIRA to use it.
If you would like to have support for this scenario, please open a feature request in our tracker: https://youtrack.jetbrains.com/issues/TW