Not sure if this is a bug or just an incorrect way of using this module.

For users trying to replicate a traditional, hierarchical site structure using Drupal's taxonomy system, Taxonomy assoc does a fine job of providing the ability to describe a term that also serves as a kind of introductory paragraph(s) for the term.
www.ciosa.org.in/devel/taxonomy/term/1

However, if the term with which tax_assoc node is linked is aliased, the term page only shows the assoc node and not the list of nodes below it (or vice versa, depending upon which node is aliased). While posting the nodes below the assoc term, one can only choose the taxonomy term, but not set the same alias as it can only be set once in the system.
With alias: www.ciosa.org.in/devel/news