ok,
what i made and iam trying is for as follow:-

Off Hook :- logical 1
On Hook :- 0

1) It is only for one Telephone Set,
2) When ever the telephone goes off hook,
3) program jmp to pulse dialing
4) wait for dailing
5) then as the digit is pressed
6) 10 milli second and 60 milli second delay is call
7) after that it is checked whether the user is still off-hook or not.
8) then 40 milli second delay is called
9) then again it is checked if the user is off hook or not..
10) then the program jmp to the a routine which conncted MT8816 switch so that Dial Tone Appears in the telephone .
11) if incorrect digit dialed i.e. other then 2 then nothing happens..


on dialing 2 controller perform the task other wise do nothing..

ORG 00H
MOV P3,#00000000B ;STROBE IS CLEARED
MOV P2,#00000000B ;RESETING THE PIN
MOV P1,#00000000B ;RESETING THE PIN
AJMP MAIN


ORG 0030H
MAIN:
OFF: JNB P2.0,OFF ;WAITING FOR OFF-HOOK
CALL PULSE_DIAL
MT8816: MOV P1,#10010000B ;ADDRESS LINE TO CONNECT Y0 WITH X2 FOR DIAL TONE
SETB P3.5 ;STROBE IS SET HIGH
DO: SJMP DO
END

PULSE_DIAL:
MOV R0,#00D ;PULSE COUNTER REGISTER
WAITING: JB P2.0,WAITING ;WAITING FOR DIALING
CALL DELAY_10MS
CALL DELAY_60MS ;MAKE =60 MILLI SECOND
JNB P2.0,MAIN ;CHECKING IS USER CONNECTED OR NOT
CALL DELAY_40MS ;BREAK = 40 MILLI SECONDS
INC R0 ;COUNT PULSES
JB P2.0,TASK ;IF USER IS STILL ON HOOK PERFORM THE TASK
JMP MAIN

TASK:
CJNE R0,#02D,DO
JMP MT8816

I have not shown the delays but these delays are used using DJNZ as only one telephone is under consideration.
Now if 2 is pressed dial tone must appear in the telephone but its not happening...is there something wrong with the code..