Bug with transparency enabled textures

I’m working with transparency enabled textures. I’m using Blender Render. I need to see the transparency of the textures as I’m working in viewport, aka in solid mode.

I’ve created Mesh A with transparency enabled texture and toggled the transparency in the material tab.

Now if there’s mesh B behind mesh A, and I select that mesh B as active object. I get an area around the visible part of the mesh A’s texture become opaque and take the color of the background behind mesh B.

This is what happens when I select Mesh B (Plane) behind Mesh A. There’s an area around the brow that takes the color of the background behind Mesh B.

How do I fix this?