WLTC0017E:Resources rolled back due to setRollbackOnly() being called error

I am having issue with a restful web service deployed on WebSphere 7. Each time I try to access a url I'm getting this error message:

"WLTC0017E: Resources rolled back due to setRollbackOnly() being called".

I am suspecting my indirect lookups as the cause of the problem. I have my look up code like this

try {
    this.em = (EntityManager) new InitialContext().lookup("java:comp/env/persistence/BACPOnlineAPPPU);
    this.utx = (UserTransaction) new InitialContext().lookup("java:comp/UserTransaction");
    } catch (NamingException ex) {
        throw new RuntimeException(ex);

    }

Apart from this, I have created my datasource and tested successfully with WebSphere. What is the evil i am doing wrong?

Here is my stack trace:

[10/6/11 10:21:26:888 WAT] 0000001d LocalTranCoor E   WLTC0017E: Resources rolled back due to setRollbackOnly() being called.
[10/6/11 10:21:26:888 WAT] 0000001d webapp        E com.ibm.ws.webcontainer.webapp.WebApp logServletError SRVE0293E: [Servlet Error]-[ServletAdaptor]: java.lang.RuntimeException: javax.transaction.RollbackException
    at com.tavia.service.PersistenceService.commitTx(PersistenceService.java:83)
    at com.tavia.service.GltmMisCodesResource.get(GltmMisCodesResource.java:63)
    at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
    at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:60)
    at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:37)
    at java.lang.reflect.Method.invoke(Method.java:611)
    at com.sun.jersey.server.impl.model.method.dispatch.AbstractResourceMethodDispatchProvider$TypeOutInvoker._dispatch(AbstractResourceMethodDispatchProvider.java:149)
    at com.sun.jersey.server.impl.model.method.dispatch.ResourceJavaMethodDispatcher.dispatch(ResourceJavaMethodDispatcher.java:67)
    at com.sun.jersey.server.impl.uri.rules.HttpMethodRule.accept(HttpMethodRule.java:259)
    at com.sun.jersey.server.impl.uri.rules.ResourceClassRule.accept(ResourceClassRule.java:83)
    at com.sun.jersey.s开发者_C百科erver.impl.uri.rules.RightHandPathRule.accept(RightHandPathRule.java:133)
    at com.sun.jersey.server.impl.uri.rules.RootResourceClassesRule.accept(RootResourceClassesRule.java:71)
    at com.sun.jersey.server.impl.application.WebApplicationImpl._handleRequest(WebApplicationImpl.java:990)
    at com.sun.jersey.server.impl.application.WebApplicationImpl.handleRequest(WebApplicationImpl.java:941)
    at com.sun.jersey.server.impl.application.WebApplicationImpl.handleRequest(WebApplicationImpl.java:932)
    at com.sun.jersey.spi.container.servlet.WebComponent.service(WebComponent.java:384)
    at com.sun.jersey.spi.container.servlet.ServletContainer.service(ServletContainer.java:451)
    at com.sun.jersey.spi.container.servlet.ServletContainer.service(ServletContainer.java:632)
    at javax.servlet.http.HttpServlet.service(HttpServlet.java:831)
    at com.ibm.ws.webcontainer.servlet.ServletWrapper.service(ServletWrapper.java:1657)
    at com.ibm.ws.webcontainer.servlet.ServletWrapper.handleRequest(ServletWrapper.java:939)
    at com.ibm.ws.webcontainer.servlet.ServletWrapper.handleRequest(ServletWrapper.java:502)
    at com.ibm.ws.webcontainer.servlet.ServletWrapperImpl.handleRequest(ServletWrapperImpl.java:179)
    at com.ibm.ws.webcontainer.webapp.WebApp.handleRequest(WebApp.java:3935)
    at com.ibm.ws.webcontainer.webapp.WebGroup.handleRequest(WebGroup.java:276)
    at com.ibm.ws.webcontainer.WebContainer.handleRequest(WebContainer.java:931)
    at com.ibm.ws.webcontainer.WSWebContainer.handleRequest(WSWebContainer.java:1583)
    at com.ibm.ws.webcontainer.channel.WCChannelLink.ready(WCChannelLink.java:186)
    at com.ibm.ws.http.channel.inbound.impl.HttpInboundLink.handleDiscrimination(HttpInboundLink.java:452)
    at com.ibm.ws.http.channel.inbound.impl.HttpInboundLink.handleNewRequest(HttpInboundLink.java:511)
    at com.ibm.ws.http.channel.inbound.impl.HttpInboundLink.processRequest(HttpInboundLink.java:305)
    at com.ibm.ws.http.channel.inbound.impl.HttpInboundLink.ready(HttpInboundLink.java:276)
    at com.ibm.ws.tcp.channel.impl.NewConnectionInitialReadCallback.sendToDiscriminators(NewConnectionInitialReadCallback.java:214)
    at com.ibm.ws.tcp.channel.impl.NewConnectionInitialReadCallback.complete(NewConnectionInitialReadCallback.java:113)
    at com.ibm.ws.tcp.channel.impl.AioReadCompletionListener.futureCompleted(AioReadCompletionListener.java:165)
    at com.ibm.io.async.AbstractAsyncFuture.invokeCallback(AbstractAsyncFuture.java:217)
    at com.ibm.io.async.AsyncChannelFuture.fireCompletionActions(AsyncChannelFuture.java:161)
    at com.ibm.io.async.AsyncFuture.completed(AsyncFuture.java:138)
    at com.ibm.io.async.ResultHandler.complete(ResultHandler.java:204)
    at com.ibm.io.async.ResultHandler.runEventProcessingLoop(ResultHandler.java:775)
    at com.ibm.io.async.ResultHandler$2.run(ResultHandler.java:905)
    at com.ibm.ws.util.ThreadPool$Worker.run(ThreadPool.java:1604)
Caused by: javax.transaction.RollbackException
    at com.ibm.tx.jta.TransactionImpl.stage3CommitProcessing(TransactionImpl.java:1224)
    at com.ibm.tx.jta.TransactionImpl.processCommit(TransactionImpl.java:998)
    at com.ibm.tx.jta.TransactionImpl.commit(TransactionImpl.java:919)
    at com.ibm.ws.tx.jta.TranManagerImpl.commit(TranManagerImpl.java:436)
    at com.ibm.tx.jta.TranManagerSet.commit(TranManagerSet.java:161)
    at com.ibm.ws.tx.jta.UserTransactionImpl.commit(UserTransactionImpl.java:293)
    at com.tavia.service.PersistenceService.commitTx(PersistenceService.java:81)
    ... 41 more

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You are most likely seeing a transaction timeout. What you should do is to ensure that your application commits changes. Also you could increase the database timeouts of WAS. You can find them under "Transaction service".