The assessee purchased an agricultural land and  entered into a partnership firm and transferred said land to partnership firm. The said land was transferred as stock in trade for a value of Rs. 22.41 crores. The Assessing Officer treated the value of Rs. 22.41 crores as the sale consideration and after deducting cost of acquisition to the assessee and stamp duty paid at the time of transfer of land in the name of the assessee, he worked out a short term capital gain chargeable to tax in the hands of the assessee for the year under consideration at Rs. 3.60 crores. Accordingly, addition to that extent on account of short term capital gain.  On appeal, it was contended that the partnership firm VD not being capable of characterized as an agriculturist could not have owned the agricultural land and the only transfer of land which took place in this case after its acquisition by the assessee was by way of sale to BOI which happened on 12-5-2011 i.e. during the previous year relevant to the assessment year 2012-13. It was contended that the firm VD could not have purchased the agricultural land because only such firm can purchase agricultural land where all the partners are agriculturists. It was contended that any agreement/arrangement for transfer of agricultural land to a non-agriculturist was a void agreement and the same could not be recognized or given effect to being not permitted by law. The Commissioner (Appeals) deleted the addition made by the Assessing Officer on account of short term capital gain. On appeal by the Revenue the Tribunal held that since partnership firm was not an agriculturist, transfer of land in question by assessee to partnership firm was void ab initio and it could not give rise to any capital gain which was chargeable to tax in hands of assessee in year under consideration.  Followed  CIT v. Vithalbhai P. Patel (1999) 236 ITR 1001(Guj)(HC) (AY. 2010-11)