Amazon simple email service converts html tags

I have a java application that uses Amazon SES for email. The email template is constructed within the Java application. I needed to add a image link to the email template and I added a standard email IMG tag like below

<img src="<PATH TO THE IMAGE OMITED>" alt="alt text omitted" >

But when the email comes through, rather than show the image, I see the HTML code on the email body. When I look at the email source I see the '<', '>' and and quote signs have been converted like below.

<p>
THIS IS AN AUTO-GENERATED EMAIL. DO NOT REPLY.
</p>&lt;img src=&quot;<a href="https://protect-au.mimecast.com/s/VywertyMqHLlkUn?domain=blah.com">https://IMAGE_PATH OMMITTED.png</a>&quot; alt=&quot;&quot; &gt;

It seems Amazon SES is converting some of the tags within the image bot not the ahref tag or even the P tag.

This was tested on a local email server and a fake smtp server and there was no conversion happening.

Amazon SES is setup on a client environment and I have no direct access to it.

What could be causing this? Could you please point in the likely direction.