Daesh terrorists captured the 43 Iraqis from the albu-Obeid Sunni tribe in the battlefield town of Al Baghdadi, some 200km northwest of the Iraqi capital Baghdad, Xinhua news agency reported citing the source.
Those abducted were believed to be local police and government-backed Sahwa paramilitary group members, and were later transferred to the nearby militants-held town of Heet, the source said.
The terrorists, according to the source, put the victims in iron cages and set fire to them in a chilling reminder of the murder of Jordanian pilot Moaz Al Kasasbeh last month in Syria.
The executions came after the killing of some 70 others during the past 10 days when the Daesh militants carried out major attacks on Al Baghdadi and the nearby air base of Ain Al Asad which houses hundreds of US Marines.
Now Iraqi Government forces, backed by local tribal fighters, broke the siege in al-Baghdadi in the Western province of Anbar.
Meanwhile, the militants laid siege to a neighbourhood in Al Baghdadi town housing dozens of families of security members and Sahwa fighters, said the source, who confirmed that the residents were facing acute shortage of food and drinking water, as well as weapons and ammunition.
On Wednesday, a suicide car bomber killed six troops and Shiite militiamen in a flashpoint area north of Baghdad that has seen much fighting with Daesh militants.
No one immediately claimed responsibility for the explosion but Samarra and the surrounding areas have been under constant attacks by the Daesh militants.