Amortization is an accounting method used by companies to spread out the expenses incurred for acquiring a long term asset to be spread over a period of time(typically as long as the asset is in use), for taxation purposes.
For example:
If a company acquires machinery for say โน1 crore which will be used for next 10 years today, then instead of showing the expense incurred towards this in one financial year in the accounting books, they will show 10 lakh as an expense over next 10 years
