deemed rent

Dear Mr Raghunath, if you are not claiming HRA, then there is no conflict. You can show one house as self occupied as Nil income. In other case, if you were claiming HRA, the different municipal areas are not enough. You have to convince AO that the workplace was far enough for you to live in a different place. But all that comes into picture if you were claiming HRA. 

Dear Prabhakar Sir, in my opinion you can your flat as self-occupied with NIL income. The reason is an assessee is allowed to declare one flat as self occupied. And in your case you are not even claiming HRA, so there should be no problem. However just to get another opinion, please repost your question again on the forum.