Eight Jammu and Kashmir policemen, including an Assistant Sub-Inspector, were beaten up by some army men in civvies when asked to stop at a check post in Ganderbal district.
While the police on Saturday said an FIR was lodged against the Army personnel involved in the incident, the Army called it "a minor altercation" and said the issue has been resolved.
The soldiers were returning after performing the Amarnath Yatra, when on Friday evening they were signalled to stop at a check post by the policemen in Gund area, 62 km from here.
"The infuriated soldiers then thrashed the eight policemen and also ransacked the Gund police station," the police said.
Police said the Army personnel in civvies were stopped as all movement of pilgrims on the highway was disallowed after 7 p.m. due to security reasons.
State Police chief S.P. Vaid has taken up the incident with "the corps commander who is looking into the incident and had promised action", police said.
Defence Ministry spokesman Colonel Rajesh Kalia said in a statement: "A minor altercation took place yesterday (Friday) between some Army personnel returning from Amarnath Yatra in civil dress and the JKP personnel at Gund."
"No major injuries were suffered in the incident. The matter has been resolved by personal intervention of senior officers. Measures to prevent recurrence have been taken," Kalia said.
The injured policemen were admitted to hospital.
Former Chief Minister Omar Abdullah sought investigation into the incident.
He tweeted: "Why would the Army beat up Jammu and Kashmir police personnel in a police station? This requires immediate clarification/action by the authorities."
Senior separatist leader, Mirwaiz Umer Farooq, took a dig at the Army.
Umer Farooq said: "Sad to hear about the severe beating of Kashmiri policemen by Army, by virtue of being Kashmiri even those who aid state oppression not spared."