Send Image in mail send via mutt command

I am using mutt utility to send email using content_type as HTML. but the problem is when i am adding image tag in my html file it is not working

Mutt command:

mutt -s "Sample Mail" -F server1.txt -e "set content_type=text/html" akshay.barakoti@sample.com -b akshay.barakoti@sample.com -a output.png < ${MAILMESSAGE}

and the value of MAILMESSAGE is "FirstMile"

FirstMile.HTML

<br>
<br>
Hi,
<br>
  PFA FirstMile_Pendency report 
<br>
<img width=1000 height=1000 id="1" src="output.png">
<h3> Disclaimer : </h3>