Sanction requirement for prosecution: prior commissioner approval governs prosecution and compounding procedures for tax offences Prosecution for offences under the specified Chapter requires prior sanction from the Commissioner or Commissioner (Appeals); the Chief Commissioner may issue directions for institution of proceedings and, with court permission, compound offences before or after proceedings under prescribed circumstances and amounts, except where a court has awarded punishment; statements or documents produced before an income-tax authority (other than an Inspector) are not inadmissible solely because they were made believing the offence might be compounded.