Postfix is not forwarding emails from domains hosted on the same server

Hello, recently we started facing an issue. We are using Postfix and Dovecot on Centos.

If i send an email to a domain hosted on the same server(@domain1 --> @domain2 both hosted on the same server), forward does not work. If i send an email from a domain hosted on our server to an email at the same domain(@domain1 --> @domain1), forward works. If i send an email from an external domain forward also works.

Could anyone be of any help? I cannot figure it out for the past few hours.

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emails from @domain1 to @domain2 directly work just fine. Just not the forward option.