You can toggle filterstatus
value like this
filterstatus ^= 1;
So your function looks like
function showFilterItem(objButton) {
if (filterstatus == 0) {
$find('<%=FileAdminRadGrid.ClientID %>').get_masterTableView().showFilterItem();
objButton.value = "Hide Filter";
}
else {
$find('<%=FileAdminRadGrid.ClientID %>').get_masterTableView().hideFilterItem();
objButton.value = "Show filter";
}
filterstatus ^= 1;
}