After some hardworking I have resolve the problem, there are some handlers that were automatically added in the live web.config by plesk, I have remove all those and add local website handlers it is working now.
these kind of handler added in the web.config
<add name="Plesk_Handler_0439968595" path="*.asp" verb="GET,HEAD,POST,TRACE" modules="IsapiModule" scriptProcessor="c:\windows\system32\inetsrv\asp.dll" resourceType="Either" />
<add name="Plesk_Handler_0439968699" path="*.cer" verb="GET,HEAD,POST,TRACE" modules="IsapiModule" scriptProcessor="c:\windows\system32\inetsrv\asp.dll" resourceType="Either" />
....there are many more..
and add following and then site is working
<remove name="WebServiceHandlerFactory-Integrated"/>
<remove name="ScriptHandlerFactory"/>
<remove name="ScriptHandlerFactoryAppServices"/>
<remove name="ScriptResource"/>
<add name="ScriptHandlerFactory" verb="*" path="*.asmx" preCondition="integratedMode" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
<add name="ScriptHandlerFactoryAppServices" verb="*" path="*_AppService.axd" preCondition="integratedMode" type="System.Web.Script.Services.ScriptHandlerFactory, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>
<add name="ScriptResource" preCondition="integratedMode" verb="GET,HEAD" path="ScriptResource.axd" type="System.Web.Handlers.ScriptResourceHandler, System.Web.Extensions, Version=3.5.0.0, Culture=neutral, PublicKeyToken=31BF3856AD364E35"/>