i dunno........ inuyasha has the ege in strenght, speed, agility, reflexes and durability. but itachi has his genjutsu and tsukiyomi, amaterasu and susano. but then inuyasha has his meido zegutsuha, so i say inuyasha wins.
inuyasha is a demon with super senses and chakra type power, also, the same thing happened{if u consider movies cannon}, against the illusion casting sorcerress. he used his sword to create a doorway out of the illusion.
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Not all illusions work the same way. Saying that because he got out of illusion A he can automatically get out of illusion B is an A>B>C argument fallacy.
he got out of a very powerful illusion. and even one of naraku's parts can cast illusions. not saying they are of the same strength as tsukiyomi, but still. i think inuyasha is very powerful by the end of the manga.
^look, even tailed beasts cant be taken over by a genjutsu by sasuke's mangekyo{as of yet}, inuyasha is DEMON. his miasma powers and othersupernatural powers wud SURELY make him much harder to just fall into na illusion, albeit one even as powerful as tsukiyomi. but inuyasha's attacks with meido zengetsuha are TOO powerful for itachi to defend agains, and yes his strength, speed{well atleast its compareable a times}, agility, and specially, durability, are above itachi's. i think he wins, but yeah, this fight cud go either way.
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The only reason why Bijuu can't be taken over is because the demon inside the host is a separate entity, so it can "wake up" the host from the Genjutsu. If it was just the Demon by itself, there really is no proof that it can break out from a powerful enough Genujutsu.
Inuyasha does not have the luxury of having a separate entity within him that can wake him up. If he is caught in a Genjutsu he is just screwed.
And the demons can wake the host up if the host is caught in a Genjutsu, whereas the demons can be affected, like when Sasuke pwned the Kyuubi with the Sharingan.
No proof at all Inu can take Tsukiyomi.
And he sure as hell is killed by Amaterasu, and Itachi is in all ways faster than Inuyasha, his movements and ability to do handseals were so fast Kakashi could not see them with the Sharingan.
^ yes he is stronger than the weaker bijuu, or havent u been reading the manga. meido zengetsuha is an attack i wud put right up there with the strongest jutsus in naruto.