Army had laid a vehicle checking naka at Chattergam chowk, 20 kms from here, in Chadoora area of Budgam following information about movement of militants through the area, the sources said.
An army team travelling in a civil vehicle did not stop at the check point, giving rise to suspicion among the naka party, who opened fire, they said.
Two jawans and the civilian driver of the vehicle were injured in the incident, the sources added.
Army officials refused to comment on the incident.
A senior police official said a team has been sent to the spot to investigate the incident.