Itachi's primary offensive techniques consist of his Katon: Gōkakyū no Jutsu (which he can "stream" too), Suiton: Suigadan, and Bunshin Daibakuha. He also has a helpful support technique in the form of Karasu Bunshin no Jutsu.
In straight up Taijutsu [excluding Bunshin feints and trickery], Itachi has the slight advantage. Both Itachi and Kakashi have equal stats in Taijutsu and strength [and the manga even implies this with their
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]. While Kakashi is quite fast himself, Itachi is half a tier above him in speed thus tilting the overall CQC scale to his favor.
In regards to the actual battle, any of Kakashi's Suitons can extinguish Itachi's Katons [especially Suiton: Daibakufu no Jutsu and Suiton: Suiryūdan no Jutsu] due to the elemental cycle. While Kakashi will have to be wary of the very swift Suiton: Suigadan, he has shown the ability to keep up with it, even in Part I. Kakashi can also use Raiton: Ryouken to keep Itachi at bay, and possibly even paralyze him from a distance.
Kakashi's constant success with Bunshin feints
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leads me to believe he will be able to create an opening to capitalize upon. Furthermore, he has managed to see right through Itachi's Bunshin in the past, and thus could most likely do so again.
Kakashi also has his Raikiri, a guaranteed kill at close range, as well as his fan-dubbed
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, a formidable mid ranged technique. His support techniques include Mizu Bunshin no Jutsu and Raiton Kage Bunshin. Granted he will probably not use Raikiri due to not having the sharingan, he still has access to Rasengan.
Kakashi wins.