Spring @transactional does not start a transaction while testing with JUnit4

I have following configuration.

<beans xmlns="http://www.springframework.org/schema/beans"
    xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
    xmlns:tx="http://www.springframework.org/schema/tx"
    xsi:schemaLocation="http://www.springframework.org/schema/beans
    http://www.springframework.org/schema/beans/spring-beans-2.5.xsd
    http://www.springframework.org/schema/tx
    http://www.springframework.org/schema/tx/spring-tx.xsd">

<bean id="dataSource" class="org.springframework.jdbc.datasource.IsolationLevelDataSourceAdapter">
    <property name="targetDataSource">
        <bean class="com.microsoft.sqlserver.jdbc.SQLServerConnectionPoolDataSource">
            <property name="user" value="user"/>
            <property name="password" value="password"/>
            <property name="serverName" value="someserver"/>
            <property name="databaseName" value="someDBName"/>
            <property name="portNumber" value="somePortNumber"/>
        </bean>
    </property>
</bean>

<!-- this is bean is only used for data extraction module only -->
<bean id="sessionFactory" class="org.springframework.orm.hibernate3.annotation.AnnotationSessionFactoryBean">
    <property name="dataSource" ref="dataSource"/>
    <property name="hibernateProperties">
        <props>
            <prop key="hibernate.dialect">org.hibernate.dialect.SQLServerDialect</prop>
            <prop key="hibernate.format_sql">true</prop>
            <prop key="hibernate.show_sql">true</prop>
        </props>
    </property>
</bean>

<bean id="entityManagerFactory" class="org.springframework.orm.jpa.LocalContainerEntityManagerFactoryBean" lazy-init="true">
    <property name="persistenceXmlLocation" value="classpath:persistence.xml" />
    <property name="dataSource" ref="dataSource"/>
    <prope