Subcategories Dynamic Tree

Hi All,
I have an issue it wasn't there in the previous versions of CS CART I think.
Once anyone enter a main category, I have a block which supposed to show the dynamic subcategory, which means just the level one subcategories and not all the categories.
For example: Lets say I have the following main category "Electronic & Appliance" as below, with 3 subcategories. If someone enters the "Electronic & Appliance" category, the Subcategory block should show one the 3 subcategories (Smart Home, Computers, Mobile Phone) without any other categories and so on for the others.
- Electronic & Appliance
-- Smart Home
-- Computers
-- Mobile Phone
If you see the attachment, I entered the "HEALTH, FITNESS & SPORTS", and the block is showing all the categories which is not logic as also will make the page to look bad.
The block is reading from my subcategory template.
Is it possible to fix this through the my changes, and not by editing the template itself?

Any help for this ???