Got this on line: Pretty much confirms and summarizes above responses.
This is an issue of sidetone. Sidetone is the part of the microphone signal that is sent back to your headset so you can hear yourself talking. It's important that you get these audio cues so you know you ARE talking, and loud enough.
During radio transmissions, sidetone is created by the com radios, and serves to verify that everything is working. So while you are transmitting, the intercom is turned off and you are hearing what the aircraft radio is providing. Anyone who can hear the radios on the intercom will also hear the sidetone.
Sometimes, the com radio does not produce sidetone This is particularly true with ARC (Cessna) radios.
In these cases, the intercom or audio panel can be modified by an avionics shop to create an artificial sidetone in the intercom. This modification allows the intercom to continue to operate during radio transmissions, so what you are hearing is the intercom, not the radio.
In other cases, sidetone can be lost because of installation problems. This occurs when Radio Frequency Interference (RFI) enters the intercom wiring during transmit, and cancels the sidetone. We have found this is caused by incorrect jack wiring, usually because of grounding of the microphone jacks at the jack end to the airframe.
The ONLY place the jacks should be grounded is the intercom