You mention that this works on the iPad -- how are you testing this? Are you building the app and installing it on the iPad, or are you using the PhoneGap Developer App? Same goes for Android -- are you installing the app or are you using the PhoneGap Developer App?
First things I'd look at is the CSP -- the Content-Security-Policy meta tag. If your HTML file has one, post it here.
Apps created with the desktop app don't include a Content-Security-Policy meta tag
On iOS, no Content-Security-Policy means everything is allowed. On android doesn't seem to work the same way.
You can use the default Content-Security-Policy included in cordova apps, note that it has a data: attribute on default-src, that's the one that allows you to use data images as src.
<meta http-equiv="Content-Security-Policy" content="default-src 'self' data: gap: https://ssl.gstatic.com 'unsafe-eval'; style-src 'self' 'unsafe-inline'; media-src *">
<meta http-equiv="Content-Security-Policy" content="default-src 'self' data: gap: https://ssl.gstatic.com 'unsafe-eval' 'unsafe-inline'; style-src 'self' 'unsafe-inline'; media-src *">
To learn more about the Content-Security-Policy meta tag see Content Security Policy Reference & Examples
Sorry for my tardy reply! Yes you are indeed spot on with your suggestion. I added a CSP meta tag with "img-src 'self' data:" included in the content and this fixed it. This is the first time I have come across CSP
Thank you very much for your reply
Jcesar that's an awesome reply, I've updated my CSP as per your suggestions, top marks. Really helpful and no doubt will help others who come accros this same issue