Carrier overcrowding and over stacking are two separate penalties.
Overcrowding is having more planes on your carriers than your carriers have space for. When carriers get overcrowded, sortie efficiency is penalized. Generally, this means you should never overcrowd your carriers. Mass Strikes in the base strike doctrine reduces the sortie efficiency penalty per plane over the deck size limit. This lets you slightly over stack your carriers if you have bonuses to sortie efficiency. Admiral traits like air controller and Japan's Tora Tora Tora national spirit give boosts to this, which is probably what you were thinking of.
The carrier stacking penalty is a separate mechanic that operates as a soft cap to the number of carriers in a battle. Every carrier over four gives your fleet a -20% penalty to the number of wings that will sortie, capping at -80%. A wing in this context is not an individual air wing, but any individual carrier's complement of a given plane type. For example, a carrier with 60 naval bombers and nothing else has one wing for the purpose of this calculation. A carrier with both fighters and naval bombers has two wings.
If you have four carriers with only naval bombers, you have four wings and no penalty. If you add a fifth carrier you now have five wings and a -20% penalty, so your first four wings will fly. The order is based on the order of your carriers in the fleet manager. So in this example, your first four carriers are sortieing normally and your fifth carrier does nothing.
However, you can manipulate the math in your favor. If you have four carriers with only naval bombers (1 wing per carrier) and a fifth carrier with fighters, CV CAS, and CV NAVs (3 wings), you have a five carrier fleet with seven wings. 80% of 7 * 0.8 = 5.6, so your first five wings will fly. Since the fifth wing is the first wing on the fifth carrier, you can add a fifth carrier with mostly naval bombers and 10 each of CAS and fighters. Any nation can get a fifth effective carrier this way, not just Japan. Fighters also aren't affected by the penalty, so you can add as many fighter carriers as you want.