Babar,
Thats what I thought and changed the LED with another one removed from one working remote control. Still result is same.

Meanwhile I tried to change the frequency and found 30KHz was achieving better range.

I have doubt on quality of IR receiver module. I am using the same which I took from Karachi, I think you are using the same.

I have to try out by changing pulse width, as IR drops-out while transit and receiver might not get the full pulse width.

Rauf