I have modified your program and run it at my system, it works so I think it should work for u also.


//----- Transmit Prg
#inlcude <reg51.h>
void Serial_Init(void)
{
SCON=0x52;
EA=1;
ES=1;
TMOD=0x20;
TH1=0xE6;
TR1=1;
}

void Transmit_Char(unsigned char c)
{
SBUF=c;
while(!TI){} //Waits until transmit
TI=0;
}

void main(void)
{
unsigned char tchar;
P1=0x00;
P3=0x00;
tchar=P1;
Serial_Init();
while(1)
Transmit_Char(tchar); // Here Sends port P1 to serial port
}
// End of Prog




/-------- Receive Prog
#inlcude <reg51.h>
void Serial_Init(void)
{
SCON=0x52;
EA=1;
ES=1;
TMOD=0x20;
TH1=0xE6;
TR1=1;
}


void main(void)
{
Serial_Init();
while(1){
while(!RI);
P1 = SBUF;
RI = 0
}
}

// End of Prog