If the questioner is from India. I can confirm residence is a valid issue. What will happen is this:
You go to the relevant passport office after an appointment. There you will be asked to submit your passport photocopy, other documents plus residence document. So make sure the passport office you are going in has juridiction over your town/ city. Then they may issue PCC then and there. Or if they are not satisfied, for any reason, they will pass on the file to district PS. And then they will send some local police officer to your residence to confirm you live there. All in all, the process takes two to four weeks, and you will have to grease the machinery a little bit.
If you are given PCC at passport office, then it takes a day only. But still make sure you have residence papers.
Indian PCC, issued inside India, will have logo of passport issuing city. For example Mumbai, Delhi, Hyderabad, Jaipur etc.
My advise is this, if your permanent address falls in same city, then get PCC issued from that address proof. And if and when it gets to local police visit stage, make sure you are in your home town,
If states are different, then make a fresh rent agreement for your current residence. And then use that.