I figured out the problem with subscription call back. Strophe JS plugin(pubsub) requires to return 'true' from callback if interested to get more triggers.
So changing call-back to return true worked.
Code change to above snippet :
//Adding subscriber to created node (Chrome)
XConn.pubsub.subscribe(
XConn.jid,
'pubsub.localhost',
'PUBSUB_NODE',
[],
function(msg){ console.log(msg); return true; },
function(sub){ return true;}
);