The solution that worked for me was to use the EditText with TextView and a flag in adater indicating edit mode enabled / disabled.
I added the TextView and the EditText in the same position in a relative layout, meaning they would be overlapping one another. The EditText will be hidden by default and TextView will be displayed. In this the item click of listview works flawlessly.
Then I assigned touch listener for TextView and onTouch I hide the textview and display the EditText and requestfocus enabling the input. Even the entire view's on click will request focus for EditText. So no item click shall be enabled.
I have a button in actionbar "Done". Once I click it I update my flag in Adapter saying "modeEdit = false" and call notifydatasetchanges.
In GetView we have check for the flag and if modeEdit = false, then display TextView.
This was only best solution I got to be working!!!
Hope this helps. Let me know if anyone is interested in the working copy of source code.