Is it true? loss from house property can’t be set off against income from salaries if it is not self occupied?

One of the income tax consultatants has advised me that the loss from house property can not be set off against the income from salaries if it is rented out. He says this provison has been with drawn in 2007 – 08. He says if the property is rented out, the loss arising out of it can be set off only against income from other sources if any & not against income from salaries as i will be claiming HRA exemption for the house i have taken on rent for my stay.