we activated the susuggested kernel 

 cat /proc/version
Linux version 4.9.0-040900rc5-generic (kernel@tangerine) (gcc version 6.2.0 20161005 (Ubuntu 6.2.0-5ubuntu12) ) #201611131431 SMP Sun Nov 13 19:33:15 UTC 2016


however, same issue reappeared:

Dec 11 21:58:00 puno01 kernel: [2306342.662457] ------------[ cut here ]------------
Dec 11 21:58:00 puno01 kernel: [2306342.662470] WARNING: CPU: 0 PID: 0 at /home/kernel/COD/linux/net/sched/sch_generic.c:316 dev_watchdog+0x22c/0x230
Dec 11 21:58:00 puno01 kernel: [2306342.662472] NETDEV WATCHDOG: eth0 (igb): transmit queue 7 timed out
Dec 11 21:58:00 puno01 kernel: [2306342.662474] Modules linked in: btrfs ufs qnx4 hfsplus hfs minix ntfs msdos jfs xfs dm_snapshot dm_bufio xen_netback xen_blkback xen_gntdev xen_evtchn xenfs xen_privcmd bridge stp llc intel_rapl sb_edac edac_core x86_pkg_temp_thermal ast ttm drm_kms_helper coretemp drm ipmi_ssif crct10dif_pclmul crc32_pclmul ghash_clmulni_intel fb_sys_fops syscopyarea aesni_intel sysfillrect sysimgblt aes_x86_64 lrw glue_helper ablk_helper cryptd intel_rapl_perf joydev input_leds ipmi_si ipmi_msghandler shpchp wmi lpc_ich ioatdma mac_hid acpi_power_meter raid456 async_raid6_recov async_memcpy async_pq async_xor async_tx xor raid6_pq libcrc32c raid1 raid0 multipath linear raid10 igb i2c_algo_bit dca ahci ptp libahci pps_core hid_generic mpt3sas raid_class fjes mptsas mptscsih mptbase scsi_transport_sas usbhid hid
Dec 11 21:58:00 puno01 kernel: [2306342.662555] CPU: 0 PID: 0 Comm: swapper/0 Tainted: G        W       4.9.0-040900rc5-generic #201611131431
Dec 11 21:58:00 puno01 kernel: [2306342.662557] Hardware name: Supermicro X10DRi/X10DRi, BIOS 1.1 04/14/2015
Dec 11 21:58:00 puno01 kernel: [2306342.662561]  ffff88200e403da0 ffffffff81416e32 ffff88200e403df0 0000000000000000
Dec 11 21:58:00 puno01 kernel: [2306342.662565]  ffff88200e403de0 ffffffff8108364b 0000013c00000000 0000000000000007
Dec 11 21:58:00 puno01 kernel: [2306342.662569]  0000000000000008 0000000000000000 ffff881ff433c000 ffff881ff6413940
Dec 11 21:58:00 puno01 kernel: [2306342.662574] Call Trace:
Dec 11 21:58:00 puno01 kernel: [2306342.662577]  <IRQ>
Dec 11 21:58:00 puno01 kernel: [2306342.662586]  [<ffffffff81416e32>] dump_stack+0x63/0x81
Dec 11 21:58:00 puno01 kernel: [2306342.662594]  [<ffffffff8108364b>] __warn+0xcb/0xf0
Dec 11 21:58:00 puno01 kernel: [2306342.662598]  [<ffffffff810836cf>] warn_slowpath_fmt+0x5f/0x80
Dec 11 21:58:00 puno01 kernel: [2306342.662603]  [<ffffffff810f8c92>] ? hrtimer_interrupt+0xc2/0x180
Dec 11 21:58:00 puno01 kernel: [2306342.662606]  [<ffffffff81799eac>] dev_watchdog+0x22c/0x230
Dec 11 21:58:00 puno01 kernel: [2306342.662609]  [<ffffffff81799c80>] ? qdisc_rcu_free+0x40/0x40
Dec 11 21:58:00 puno01 kernel: [2306342.662616]  [<ffffffff810f5f25>] call_timer_fn+0x35/0x120
Dec 11 21:58:00 puno01 kernel: [2306342.662619]  [<ffffffff810f64b5>] run_timer_softirq+0x215/0x4b0
Dec 11 21:58:00 puno01 kernel: [2306342.662624]  [<ffffffff810e5eca>] ? handle_percpu_irq+0x3a/0x50
Dec 11 21:58:00 puno01 kernel: [2306342.662631]  [<ffffffff8188eb94>] __do_softirq+0x104/0x28c
Dec 11 21:58:00 puno01 kernel: [2306342.662634]  [<ffffffff81089ab6>] irq_exit+0xb6/0xc0
Dec 11 21:58:00 puno01 kernel: [2306342.662639]  [<ffffffff8150c5f5>] xen_evtchn_do_upcall+0x35/0x40
Dec 11 21:58:00 puno01 kernel: [2306342.662642]  [<ffffffff8188d00e>] xen_do_hypervisor_callback+0x1e/0x40
Dec 11 21:58:00 puno01 kernel: [2306342.662643]  <EOI>
Dec 11 21:58:00 puno01 kernel: [2306342.662649]  [<ffffffff810013aa>] ? xen_hypercall_sched_op+0xa/0x20
Dec 11 21:58:00 puno01 kernel: [2306342.662651]  [<ffffffff810013aa>] ? xen_hypercall_sched_op+0xa/0x20
Dec 11 21:58:00 puno01 kernel: [2306342.662657]  [<ffffffff81022ef0>] ? xen_safe_halt+0x10/0x20
Dec 11 21:58:00 puno01 kernel: [2306342.662663]  [<ffffffff8188b5b0>] ? default_idle+0x20/0xd0
Dec 11 21:58:00 puno01 kernel: [2306342.662668]  [<ffffffff8103830f>] ? arch_cpu_idle+0xf/0x20
Dec 11 21:58:00 puno01 kernel: [2306342.662671]  [<ffffffff8188b9c3>] ? default_idle_call+0x23/0x30
Dec 11 21:58:00 puno01 kernel: [2306342.662676]  [<ffffffff810c8fb0>] ? cpu_startup_entry+0x1d0/0x240
Dec 11 21:58:00 puno01 kernel: [2306342.662679]  [<ffffffff8187e7b7>] ? rest_init+0x77/0x80
Dec 11 21:58:00 puno01 kernel: [2306342.662685]  [<ffffffff81f85fd3>] ? start_kernel+0x448/0x469
Dec 11 21:58:00 puno01 kernel: [2306342.662689]  [<ffffffff81f852ca>] ? x86_64_start_reservations+0x24/0x26
Dec 11 21:58:00 puno01 kernel: [2306342.662691]  [<ffffffff81f8ca9d>] ? xen_start_kernel+0x52f/0x53b
Dec 11 21:58:00 puno01 kernel: [2306342.662694] ---[ end trace 14b3343d2dd3515f ]---
Dec 11 21:58:00 puno01 kernel: [2306342.662741] igb 0000:04:00.0 eth0: Reset adapter
Dec 11 21:58:00 puno01 kernel: [2306342.663187] xenbr0: port 1(eth0) entered disabled state
Dec 11 21:58:00 puno01 kernel: [2306342.685493] igb 0000:04:00.1 eth1: Reset adapter
Dec 11 21:58:00 puno01 kernel: [2306342.699077] igb 0000:04:00.1 eth1: igb: eth1 NIC Link is Up 1000 Mbps Full Duplex, Flow Control: RX
Dec 11 21:58:02 puno01 kernel: [2306344.857683] igb 0000:04:00.1: exceed max 2 second
Dec 11 21:58:02 puno01 kernel: [2306344.859914] igb 0000:04:00.1 eth1: igb: eth1 NIC Link is Down
Dec 11 21:58:03 puno01 kernel: [2306346.074702] igb 0000:04:00.0 eth0: igb: eth0 NIC Link is Up 1000 Mbps Full Duplex, Flow Control: RX