House property deduction

Dear All,

An asessee purshased a house in the Fy 2010-11 and renovated the same in the same period.He claimed HRA exemption for that period since he stayed in a rented house.He also Claims Loss from House property (Interest paid on loan taken). My query is to take the property as Self occupied or deemed to letout,(He didn't occupy his own residential but resided in a rented property in the same city)

Please suggest with proper reason?