A section of the media has reported communication between the Income Tax department and the Central Bureau of Investigation regarding records of telephonic conversations between a person by the name of Nira Radia and others. It is also reported, citing sources in the CBI, that in addition to Radia, telephone lines of several other influential business-men, politicians and advertising professionals were tapped.

The Central Board of Direct Taxes (CBDT) has clarified that the Income Tax department has not recorded any telephone conversation of influential businessmen, politicians and advertising professionals as alleged.

It is further clarified that the Income Tax department does not intercept telephonic conversations except as authorised under the law. The provision is used in rare and exceptional cases of suspected tax fraud / evasion involving security of the state. The procedure, as prescribed under the law, is strictly followed in all such cases. Interception of communications: CBDT says income-tax surveillance limited to law-authorised cases with procedural safeguards for suspected tax fraud The Central Board of Direct Taxes clarifies that the Income Tax Department does not record telephone conversations except under statutory interception powers, invoked only in rare, exceptional cases of suspected tax fraud or evasion involving state security, and that the legally prescribed procedure for authorisation and interception is strictly followed.