Could not transfer file from XMPP Client to Client

When I try to send a file from one XMPP client to another XMPP client, I get a confirmation prompt. When I click ok files are not getting transferred.

All the required ports are open in the firewall. Can anyone help me in this regard ?

What XMPP server, what client and client version? This still can be a firewall issue (on the client side) as file transfers are client to client and use various ports. Try disabling firewalls on the clients.