I have added the icon as shown in the pic below but I am still not seeing the icon in my device or simulator.
If you're able to fetch the app through Spotlight Search and App library but can't seem to locate its icon, it's possible that you might have hidden the Home Screen page containing that icon. To unhide your Home Screen, tap and hold anywhere on the empty space on your Home Screen.
This might be an XCode 5 bug that the added icons are not actually included in the app bundle, but you can work around it by going to Build Phases, expand Copy Bundle Resources, then press the "+" sign in the bottom to manually add the icon files to this category.
In addition iOS 5/6 seems to have a bug that the screen doesn't update the app icon even if the icon files are included in the bundle. To work around it (as suggested by josema.vitaminew at App Icon not changing when app version is updated in iOS 5 simulator) you can drag the app icon into a folder, then iOS will update the appearance of it.
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