Hi Shruti,
The item status is not validated by standard, so the system is working as designed.
Following wiki site is partly about this topic:
http://wiki.sdn.sap.com/wiki/x/KIlRCw
During the validation only product ID and quantity are sent to the catalog, where it is checked if the product exists and if it exists, what is the correct actual price for that quantity.
Regards,
Timea