Yes you all were right by default the image doesn't have border. As i had two columns in my defined style it was creating two rectangles for each(one for my textblock another for image).To get rid of this I used one column defination and it worked. :)
<Grid.ColumnDefinitions>
<ColumnDefinition Width="*"/>
</Grid.ColumnDefinitions>
<Image x:Name="ImagePresenter" Grid.Column="0" Source="{StaticResource IconDocument}" Width="15" HorizontalAlignment="Left"/>
<TextBlock x:Name="TextPresenter" Grid.Column="0" Text="{Binding DocumentName}" Style="{StaticResource DocumentViewerOutputTextItem}" Margin="15 4 4 0"
Visibility="{Binding IsSelected, Converter={StaticResource InvertVisibilityConverter}, RelativeSource={RelativeSource TemplatedParent}}"/>
<TextBlock Grid.Column="0" Text="{Binding DocumentName}" Style="{StaticResource DocumentViewerOutputTextItem_MouseOver}" Margin="15 4 4 0"
Visibility="{Binding IsSelected, Converter={StaticResource VisibilityConverter}, RelativeSource={RelativeSource TemplatedParent}}"/>
<Rectangle x:Name="focusElement" Opacity="0" Stroke="{StaticResource color_506_brush}" StrokeThickness="1" IsHitTestVisible="False" RadiusX="4" RadiusY="4"/>
</Grid>
</Grid>
</ControlTemplate>