Thanks JChin. I missed it, I tried Bravia Sync, but didnt help much. After 4 hours of struggle i found the problem. To my bad it was a strange issue. Here is what happened
1) i disconnected all cables and just did one hdmi connection between TV and Soundbar through ARC (HDMI 2 port in Sony TV)
2) after multiple Anynet ON & OFF, at one point it showed sign of connection. but didnt last long and didnt come back too.
3) I reset the Soundbar (long press Stop button)
4) Then it worked through ARC. I was able to hear the sound. (at that time i was playing USB songs)
!!!Strange part comes now!!!
5) without disturbing the settings i connected my DTH (HDMI 1 port) & DVD player (HDMI 3 port) to TV
6) Then, ARC didnt work no sound from Soundbar
7) I realized it could be a cable issue. Started ruling out cables one-by-one, my DVD player cable was the culprit. When I used the (defective) cable I could see HDMI video but ARC was not working. Strange thing, though it was not connected in ARC port, whenever i use the cable (non-ARC port) the ARC is not working, i dont see a logic here.
8) After changing the (so called) defective cable, i didnt have any issues. I have connected all my devices to TV and Audio return to Soundbar. Awesome, it works very good. I could able to control my tv and soundbar in one single remote. It is a magic.
Thanks for your support and advise.