Under income-tax provisions, depreciation on lease asset is allowed to:

The correct answer is: B. Lessee

Under income-tax provisions, depreciation on lease asset is allowed to the lessee. This is because the lessee is the one who is using the asset and is therefore entitled to the tax benefits associated with its ownership. The lessor, on the other hand, is not entitled to depreciation on the lease asset because it does not own the asset.

Here is a brief explanation of each option:

• A. Lessor
  The lessor is the party who owns the asset and leases it to the lessee. The lessor is not entitled to depreciation on the lease asset because it does not own the asset.
• B. Lessee
  The lessee is the party who leases the asset from the lessor. The lessee is entitled to depreciation on the lease asset because it is the one who is using the asset.
• C. Any of the two
  This option is incorrect because only the lessee is entitled to depreciation on the lease asset.
• D. None of the two
  This option is also incorrect because the lessee is entitled to depreciation on the lease asset.