I found the time to have look in your Repo and sent you a PR.
https://github.com/emmabbb/hugo_test/pull/1
It is very much possible to have a Nested Hugo Taxonomy under a Section with Multiple Terms.
Sorry for saying that this is not possible above. I should have spoken after taking your repo for a spin.
P.S. I renamed your topic to something more informative.
@kaushalmodi
I am working on a PR for the Hugo Docs about Nested Taxonomies.
This is an undocumented feature that has been available since Hugo 0.31
See the relevant commit here
The use case of this feature is described in this thread i.e. a Nested Taxonomy under a Section with multiple Taxonomy Terms and also in this topic about Chronological Blog Archives.
Once I’m ready I will send it for review.
P.S. I started working on this a few days ago but got sidetracked.