According to sources, the LeT claimed the deceased to be a police informer.
Jammu and Kashmir Police spokesperson confirmed the development and said, "The youth was brutally murdered by Lashkar-e-Taiba militants".
Manzoor and his father Abdul Gaffar Bhat were kidnapped by militants from their Bonkhan Mohalla, Hajin area, late on Wednesday night.
This is the second incident of abduction in Bandipora district this week.
25-year-old Butt and his father were kidnapped by a group of suspected militants after barging into their house in Hajin during the intervening night of April 4 and 5. The outfit has not reacted to the charge, so far. "Any shut down call or call for peaceful protests for Manzoor Ahmed whose decapitated body was found in North Kashmir after he'd been abducted & killed by militants? No?"
A case has been registered and an investigation is under way.
The police said one militant was killed in Pulwama's Kgan when a patrol of the security forces came under fire.
The police said a local LeT's cadre is behind the killing of Butt after his kidnapping.
Manzoor's beheaded body was found on Friday in an orchard, about a kilometre away from his house, they added. His bullet-riddled corpse was found on the outskirts of the township next day.
Police said local terrorist Mohommad Saleem Parrey is believed to have played a major role in the killing of the local innocent youth.