Hi Neha,

I have done such communication several times, but I generally use the SBUF registers for the purpose. Also, I think you haven't used interrupts for your data reception. I am not sure if your subroutines use the interrupts for that. It looks like you are just using a delay routine. Try increasing the delay and then see. One more thing that can be seen is that both your programs will keep on running continuously, so at some time am sure they will go out of sync if you don't use the interrupts.
Also, when you are displaying the buffer contents please display some dummy data like "***" before and after the buffer1, to see exactly what your buffer1 contains. This might not be the recommended way to debug, but it is quick and am assuming you don't have much time left for your submission.

Hope this helps
-Ashish