Led by Brigadier T A Sandhu Indian side asked for fulfilment of three conditions before the return of normalcy along the LoC.
According to sources, India demanded that the severed head of Hemraj be returned without any delay. It called for cease-fire at the LoC and a complete stop to efforts aimed at smuggling in infiltrators to India, sources added.
The Pakistani side also demanded ceasefire in Krishnagarhi area. It once again reiterated that the current tension was result of offensive first started from the Indian side, said the source.
Earlier on Sunday, the fresh firing by Pakistan troops on Indian posts in Nangitikri forward area along LoC in Poonch district around 1630 hours was reported.
The attack took place hours after Pakistan agreed for a Brigade Commander-level flag meeting, sought by India, along the LoC in Poonch to discuss the recent intrusion and brutal killing of jawans besides continued ceasefire violations by its soldiers that have flared up tension.
At the flag meeting, the Indian side is expected to strongly protest the Pakistani intrusion and the beheading of a soldier and demand the return of the severed head believed to have been carried by Pakistani army regulars as a trophy after the killing of two soldiers on January eight.
"Brigade Commanders' flag meeting is being held on Monday at Chakan-Da-Bagh LoC point in Poonch sector of Jammu and Kashmir at noon," Public Relation Officer (PRO), Defence, Col R K Palta told media.
Pakistani posts opposite Nangitikri targeted the posts and the Indian troops retaliated, he said.
The exchange continued for a brief period before coming to a halt, he said, adding there was no loss of life or injury to anyone on the Indian side.
There was firing on five Indian posts --Kranti, Kripan, Gordha, Chajjaman and Dogra from Pakistan posts- Daku, Chooha, Roza and Battal. Mortars were fired intermittently from Pakistan side.
The ceasefire violation was the fourth by Pakistan troops along Poonch sector after the killing of two jawans.
On the overnight firing, Palta said movement of six to seven persons was detected close to LoC opposite Krishnagati sub-sector in Poonch sector around 2145 hours on Saturday.