Cancelled Passport before application submission

[surjitsk]

Hi all, I got my ITA on July 24th 2019 and deadline for submission is Sep 23rd. On 4th Sep i found out my passport was damaged and applied for a new passport through TATKAL but RPO said they can process it only through NORMAL. I had my docs verification on 11th Sep and my passport was stamped "PASSPORT CANCELLED VISA IF ANY IS VALID". I was also told that new passport will be provided after Police verification. I have got all the other documents like PCC, Medical, POF, etc ready with old passport number. I do not know when i will get my new passport. what do i do now? Can i submit my application with the cancelled passport and acknowledgement copy for new passport or should i decline the ITA?