Yeah gurus like Usyncus are right!!... I got curious after reading this thread and found the following info from murthy's website ...
"
Substitution Beneficiary Enjoys H1B Extension Benefit!
In a particularly liberal construction of the law, Mr. Yates indicates that, if a labor certification, previously approved for another "green card" candidate but unused for that candidate, is now being used to support an I-140 petition for an H1B status holder, the date of filing of the original labor certification may be used for that H1B nonimmigrant to file for one-year incremental H1B extensions, as long as additional proof is submitted that the person has a pending or approved I-140 based on that labor certification. Under this interpretation, therefore, a person who is using a substituted labor certification that was filed more than 365 days prior, but whose employer filed the I-140 petition for the H1B employee only two months before the six-year H1B window expired, is now eligible for the one-year incremental extensions.
"
Even though they do talk about substitution but I think if the person(who filed original LC) is carrying on to file I-140, he is eligible for the H1b extension
even though 365 days have yet not passed filing I-140
What a relief