Section 35ABB of the Income-tax Act, 1961, allows for the amortization of expenditure incurred for obtaining a license to operate telecommunication services. This section applies to taxpayers who have incurred capital expenditure for acquiring such licenses. The expenditure is allowed as a deduction in equal installments over the period of the license or the remaining unexpired period of the license, whichever is shorter. This provision is significant as it provides a tax benefit by spreading the deduction over several years, aligning the tax deduction with the period over which the license is used to generate revenue. The statutory test requires that the expenditure must be capital in nature and directly related to acquiring the telecommunication license. The burden of proof lies with the taxpayer to demonstrate that the expenditure qualifies under this section. In practice, this section helps telecommunication companies manage their tax liabilities more effectively by matching expenses with the corresponding income period.