In your case i guess sql server doesnt have access to sheet1 file.
Check here how to make file accessible or what could be the problem for sql to locate your file.
There are 2 ways that i know of how you could achieve this.
1>>
BULK INSERT TestTable
FROM 'C:\CSVData\sheet1.xls'
WITH
(
FIRSTROW = 2,
FIELDTERMINATOR = ',', --CSV field delimiter
ROWTERMINATOR = '\n', --Use to shift the control to next row
ERRORFILE = 'C:\CSVDATA\SchoolsErrorRows.txt',
TABLOCK
)
But make sure on your system sql server has access to folder from where you want to take the excel file and you have bulk import rights
Check out more info
here
2>> Also you could use sql import wizard like this.