The killing has also evoked widespread condemnation in Kashmir.
"The army authorities have ordered a thorough probe headed by a senior officer to investigate into the incident of Ashtingoo, Bandipora on the night of 24-25 July 2012, in which Hilal Ahmad Dar of Village Aloosa had died," a defence spokesman said in a statement on Monday evening.
"The probe will consider all the aspects of the incident including inputs from the awaam (public) and Jammu and Kashmir police and an earnest endeavour will be made to bring out the truth. Depending on the outcome of the investigations, action will be taken as per the law of the land," the statement said.
While reassuring of fair and transparent investigation into the incident, the army authorities reiterated that "the army is committed towards peace in the Valley and security, well being and dignity of the awaam".
"Notwithstanding the outcome of this incident, the army has conveyed its full sympathies towards the aggrieved family for the loss of life of Hilal Ahmad Dar," the statement added.
The army also stated that it is fully cooperating with the police investigations, the statement said.