Solved by myself, reason was "for some reason" log4net configuration was not loaded from assembly info. Still I do not know why that happens.
I tried so many fixes proposed by different posts. Finally fixed the issue. Solution mentioned in this post helped me to solve the issue.
I have added following configuration,
<!--These settings load the log4net configuration.-->
<add key="log4net.Config" value="log4net.config"/>
<add key="log4net.Config.Watch" value="True"/>
It starts logging!
Then I removed following line from assembly info,
// Configure log4net using the .config file
[assembly: log4net.Config.XmlConfigurator(ConfigFile = "log4net.config", Watch = true)]