At last adding a special case for Nexus 7 with in <compatible-screens>
tag worked for me. As Nexus 7 has tvdpi density
<compatible-screens>
<!--no small size screens -->
<!--all normal size screens -->
<screen android:screenSize="normal" android:screenDensity="ldpi" />
<screen android:screenSize="normal" android:screenDensity="mdpi" />
<screen android:screenSize="normal" android:screenDensity="hdpi" />
<screen android:screenSize="normal" android:screenDensity="xhdpi" />
<!-- all large size screens -->
<screen android:screenSize="large" android:screenDensity="ldpi" />
<screen android:screenSize="large" android:screenDensity="mdpi" />
<screen android:screenSize="large" android:screenDensity="hdpi" />
<screen android:screenSize="large" android:screenDensity="xhdpi" />
<!-- all xlarge size screens -->
<screen android:screenSize="xlarge" android:screenDensity="ldpi" />
<screen android:screenSize="xlarge" android:screenDensity="mdpi" />
<screen android:screenSize="xlarge" android:screenDensity="hdpi" />
<screen android:screenSize="xlarge" android:screenDensity="xhdpi" />
<!-- Special case for Nexus 7 -->
<screen android:screenSize="large" android:screenDensity="213" />
</compatible-screens>
UPDATE:
For xxhdpi devices you can use 480 as an int value
<screen android:screenSize="normal" android:screenDensity="480" />
<screen android:screenSize="large" android:screenDensity="480" />
<screen android:screenSize="xlarge" android:screenDensity="480" />`