Yes, under the Income Tax provisions, it is indeed possible for an individual to claim both the House Rent Allowance (HRA) exemption and the home loan interest deduction on properties located within the same city. However, certain conditions must be met to legitimately avail both benefits:

1. HRA Claim: This exemption can be claimed if you are living in a rented property and paying rent. HRA is primarily designed for individuals who do not reside in their own houses but in rented accommodations.
2. Home Loan Interest Deduction: Under Section 24(b) of the Income Tax Act, you can also claim a deduction for interest paid on a home loan for a property you own, up to a limit of ₹2 lakh per annum for a self-occupied property.
3. Reason for Both Claims: When claiming both HRA and home loan interest deductions, you should have a valid justification for not residing in the owned property. Common reasons include the property being too distant from your workplace or the property undergoing construction or renovation.

It is crucial to maintain proper documentation such as rent receipts and home loan interest certificates. Additionally, having a reasonable explanation for renting another property while owning one is advisable to ensure compliance and smooth processing in case of scrutiny by tax authorities.