Does TCP guarantee delivery of packets and thus is thus application level re-transmission ever required if transport protocol used is TCP
TCP guarantees delivery of message stream bytes to the TCP layer on the other end of the TCP connection. So an application shouldn't have to bother with the nuances of retransmission. However, read the rest of my answer before taking that as an absolute.
However the client goes offline and comes back only after say 10 hours, so will TCP stack handle re-transmission and delivering message to the client or will the application running on the server need to handle it?
No, not really. Even though TCP has some degree of retry logic for individual TCP packets, it can not perform reconnections if the remote endpoint is disconnected. In other words, it will eventually "time out" waiting to get a TCP ACK from the remote side and do a few retries. But will eventually give up and notify the application through the socket interface that the remote endpoint connection is in a dead or closed state. Typical pattern is that when a client application detects that it lost the socket connection to the server, it either reports an error to the user interface of the application or retries the connection. Either way, it's application level decision on how to handle a failed TCP connection.
is application level ACK needed if transport protocol is TCP
Yes, absolutely. Most client-server protocols has some notion of a request/response pair of messages. A TCP socket can only indicate to the application if data "sent" by the application is successfully queued to the kernel's network stack. It provides no guarantees that the application on top of the socket on the remote end actually "got it" or "processed it". Your protocol on top of TCP should provide some sort of response indication when ever a message is processed. Use HTTP as a good example here. Imagine if an application would send an HTTP POST message to the server, but there was not acknowledgement (e.g. 200 OK) from the server. How would the client know the server processed it?
In a world of Network Address Translators (NATs) and proxy servers, TCP connections that are idle (no data between each other) can fail as the NAT or proxy closes the connection on behalf of the actual endpoint because it perceives a lack of data being sent. The solution is to have some sort of periodic "ping" and "pong" protocol by which the applications can keep the TCP connection alive in the absences of having no data to send.