Reports said a passenger bus was caught in the crossfire killing a woman and injuring 17 civilians and two jawans.
The report further added that the Army truck came under attack in the Deraki Gali area of Thana Mandi early this morning.
Army troops retaliated and a heavy gunbattle followed which continued till last reports came in.
The bus passengers have been evacuated and the injured are admitted to a local hospital in Rajouri.
This firing took place after Prime Minister Manmohan Singh appealed citizens to end violence in the Valley.