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Usually, the Outlook client that you are using is configured to not to display the images from unauthorized source. It shows an empty image with X mark.
At the when you open the email with the image, Outlook provides an option something similar to 'Show Images' or 'Display Images'. Select this to see the image.
As long as the image is displayed fine in the web based emails your code works fine. Email clients treat the emails in its own way which cannot be controlled by our code.
Hope this helps.
Thanks for your reply.
when i open the email in outlook, i am getting 'If there are problems with how this message is displayed, click here to view in a web browser'. So when i view in browser(IE) on clikc of this link, the email opened from the temporary internet files(AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\54AMMRVF\email (4).mht)
Here i am able to see the image.
Suppose if i forward this email to my gmail and opening in a browser, this time i cant see the image. i am getting only the blank space there.