THE ANSWER IS NOBEL PEACE PRIZE FOR PRIME MINSTER MANMOHAN SINGH
My two bit as to why the Indian Defense Min tried to put Pakistan off the hook for its dastardly act in killing of 5 soldiers:
1. USA is in the process of withdrawal of forces and is facing serious heat on its flank, it has told India not to do anything to heat matters in LoC that will make Pakistan direct more Army personnel from its Afghan border to Indian border - making Haqqanis et al go in and out more easily to blow ofF NATO and coalition troops.
2. As a quid pro quo, it has offered Indian Govt a way out - a Nobel Peace prize for PM Manmohan Singh and Nawaz Sharif for a joint declaration and treaty (along the lines of the 1994 Prize - Arafat, Perez and Rabin). For a beleaguered UPA government, this would have been an imp coup de etat. However Pakistan Army is in no mood for Nawaz to be given a Nobel Prize, much less, sign a treaty with India. It acted on its own to derail the peace talk.
Hence Indian government is trying to get Pakistan off the hook. The question is - is this in India's self interest?