The incident took place in Sion-Koliwada area here yesterday.
Venkatesh (22), the accused, had an argument with his sister-in-law Rosy which turned into a scuffle, police said.
Rosy took shelter in her neighbour Sumati's house where Venkatesh followed her.
As Sumati's dog started barking, he allegedly stabbed the animal to death with a knife lying in the house.
He was arrested under section 429 of IPC (mischief by killing or maiming cattle).
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