panathas :
Did you look for bend pins on the CPU socket? Are all the pins OK. One bend or misaligned pin can cause an infinite boot loop. It's very easy to bend a pin if you try to install a CPU and remove it more than one time. Also try to unplug and then re-plug the EPS 12V cable on the motherboard. Maybe it doesn't make enough contact. Finally you may have sorted something on your motherboard by accident without even realising it. Since you are also using a new CPU cooler, did you follow all the installation instructions? Did you install a back-plate on your motherboard? It's very easy to sort a motherboard that way. Keep in mind that a simple thing such an overtightened screw can also cause this system behaviour.
EDIT. Do you have a PCIe graphics card? Try to remove it as a test. If your system is able to boot in this configuration then the PSU is responsible since this specific model isn't considered to be very good. Good luck.
You were right, there were some bend pins on CPU socket and touching each other, causing it to short. I was able to straight them up and reinserting the CPU, started the system. For now, its working fine, I also tried some stress test on CPU, it never went above 70 C. My concern is that whether using the motherboard like this can damage CPU or anything else in long run.