A system and method for forming patterned tufted fabrics such as carpets, including the formation of patterns having cut pile and loop pile tufts therein. The system includes a pair of needle bars each carrying a series of needles to which a plurality of yarns are fed. Cut pile hooks are arranged along a cut pile side of a tufting zone, in a position to engage the needles of one of the needle bars, while loop pile loopers are arranged along the opposite loop pile side of the tufting zone, in a position to engage the needles of the other one of the needle bars. A backing material is fed through the tufting zone, and as loop pile tufts of yarns are formed in the backing material, the needles mounted along a needle bar extending along the cut pile side of the tufting zone can be shifted to an off-gauge position, with the yarn feed to these needles further being controlled, to substantially prevent engagement and pick-up of the yarns carried by such needles by the cut pile hooks.