1. To actually store the data in the array, I think you better define im_r as reg, and not as wire.
2. In the fopen line, there is a space in the filename (between "image_r.tx" and the "t").
3. There is a common confusion with "binary" contents of a file. When you open image_r.txt file with a text editor, and can see "00000001" etc, then that's a text file, and when reading it in pure binary reading function (like $fread), it will give you the ascii codes of "0" (0x30) and "1" (0x31), and a Line-Feed code (0x10) after each 8 characters.
For your file format, you better use:
$readmemb("C:\Users\Rohit\Documents\MATLAB\image_r.txt", im_r);
instead of $fopen, $fread and $fclose.
4. To be able to read your debug data in $display, you better change the "%b" to "%h" or "%0h" (that's a 'zero' before the 'h') .
---------- Post added at 15:19 ---------- Previous post was at 15:18 ----------
another minor issue:
for (i = 0; i <= 110592; i = i+1)
should be:
for (i = 0; i < 110592; i = i+1)