The Independent Police Investigative Directorate says officers accused of shooting dead a 19-year-old man in his bed at Tsomo in the Eastern Cape acted in self-defence.
Fifteen police members raided the home of the Tsomo High School Grade 10 pupil Nathi Sotushe last week.
They accused the victim of attacking them with a spear.
His family, however, says Sotushe was tortured before the fatal shot.
The matter will be referred to the director of Public Prosecutions for a final decision.