Court held that it was not in dispute that the assessee was established for educational purposes. It was wholly and substantially financed by the Government. Judicial notice could be taken on the fact that in the State of Bihar, the assessee-Corporation was distributing books free of cost to children studying in various Government schools. Accordingly the assessee was entitled to exemption.

Obiter dicta. The court, with respect to the very same assessee, under identical circumstances, had quashed and set aside the order passed by the Revenue, as confirmed by the Tribunal. There was no reason why the Assessing Officer ignored this fact, by not taking cognizance thereof, particularly when attention was invited to it. There was also no reason why the Revenue persisted in opposing the petition and not withdraw its action, particularly when the view of the court was known but had never been assailed, and had attained finality. (AY.2006-07)