variables are case sensitive. Remove | tr '\n' ' '.
Rest is ok.
v_source_query=�select count(*) from emp�
v_source_value=`sqlplus -S "$DATABASE_LOGIN" << EOF
set feed off
set pagesize 0
set head off
set linesize 2000
$v_source_query
EOF
`
echo $v_source_value
v_source_query="select source_query from source where source_id = $1;"
echo $v_source_query
v_source_value=`sqlplus -S "$DATABASE_LOGIN" << EOF
set feed off
set pagesize 0
set head off
set linesize 2000
$v_source_query;
EOF
`
echo $v_source_value
v_source_query="select source_query from source where source_id = $1;"
echo $v_source_query
v_source_value=`sqlplus -S "$DATABASE_LOGIN" << EOF
set feed off
set pagesize 0
set head off
set linesize 2000
$v_source_query
EOF
`
echo $v_source_value