The police said four people, including two children, were killed on Wednesday when gunmen and soldiers exchanged fire in Kashmir.
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The shooting took place in Doodipora village near Handwara town, 80 km north of Srinagar.
"We are looking into the incident and have sent a team to the spot. Initial reports suggest (the four were killed in) crossfire between terrorists and security forces," a senior police official said.
But hundreds of protesters, who came out on to the streets after the killings, blamed soldiers for the deaths, police said.
The Army denied the charge.
The region's main separatist alliance on Monday rejected an invitation by Manmohan Singh to attend a conference, scheduled for Saturday.