This belongs to the creators of Naruto, the only credit I can take is of the fanfiction.
It was a warm night in the village of Konohagakure. the might vendors were in full swing as they served the shinobi and civilian population. The shinobi patrolled the village, and all was peaceful, that was till a certain Jiji happened apon the pedestal that the scrolls of sealing should have been on. This was an immediate concern of the aged shinobi, quickly his fears dampened by the site old a tell tail piece of orange cloth. Without a moment's hesitation he flared his chakra, he stood as 3 anbu members appeared before him, he looked at the one with a cat mask and purple hair. "Neko-san I want you to gather the shinobi. It is of A-rank importance." She nodded before disappearing. "Inu-san, boa-san go search around the red light distract and the Iruchiraku ramen stand for Naruto Uzumaki, if you find him bring him to me immediately." They both nodded and disappeared in a gust of wind. Hiruzen sighed, this was going to be a long night.
In the middle of the woods was a young boy smiling with a grin brighter than the sun, it was truly a happy day for the young blond, he would finally become a genin. He had just mastered the Kage bunshin no Jutsu and currently he was looking at the harisin justsu of the 4rth Hokage, even if he didn't know it belonged to the fourth. He had been almost enveloped by the words and seals., it was something he would happily work on for hours if he wasn't interrupted. "NARUTO what did you do." The scarred Chuunin looked at the blond with a confused and slightly angered face. "Oh, hey Sensei I know I was supposed to learn 2 jutsu but these are really tough, can you please give me another few hours."
He pleaded to Iruka with seemingly no knowledge of the crime he had committed. "Naruto what are you talking about?" Iruka was confused by the words what did he mean by having to learn jutsu. "Common Iruka-sensei, the secret exam, Mizuki-sensei told me that if I managed to steal the scroll and learn 2 jutsu I would graduate with the position Rookie of the Year, I finally have a chance to stick it to Saskue-teme. HaHa I can't wait to see his face." This revelation was shocking to the Scarred Chuunin it had been Mizuki that placed Naruto in such a situation, this wouldn't be shown with kindness. First off all he needed to get Naruto to the Hokage tower the sooner the better.
"Naruto the scroll you took is the scroll of sealing, it contains forbiden jutsus that could destroy Konoha if they fell in the wrong ha- NARUTO GET BACK." Iruka shouted as he pushed Naruto back. As he pushed Naruto a fury of kunai nearly cut his vitals but barely escaped the blades. He looked up to see Mizuki there with a pair of giant shuriken strapped onto his back an holding a kunai. "MIZUKI HOW COULD YOU, THIS IS TREASON." He ducked under a shuriken. "It doesn't matter anymore Iruka, Naruto give me the scroll and you will become a shinobi, Iruka is trying to trick you because he doesn't want you to be a shinobi, he hates you Naruto."
Naruto backed away from the two clearly confused. "N-n-no he wouldn't, I-Iruka sensei is m-my friend I refuse to believe that he would do that to me." He looked terrified at the 2 shinobi. "Oh, really you believe he is your friend, HA, he hates you cause you're the reason he has no family, you're the reason he has no parents." Mizuki Shouted as loud as he could smirking. "MIZUKI NOOOO, IT IS FORBIDEN" Iruka shouted at the man knowing he was about to break the fourth's decree. "NOO, YOU KNOW IT IRUKA, YOU HATE NARUTO, HE TOOK YOUR FAMILY AND DESTROYED KONOHA, HE IS THE NINE TAILS KYUBI NO YOUKO, HE IS THE DEMON, oh well It doesn't matter anymore, I'll kill Naruto and you then make off with the Scrolls." Mizuki grinned with greed in his eyes as he threw a fūma shuriken at Naruto as hard as he could.
Naruto seeing this franticly crawled back trying to get away knowing it was helpless. He closed his eyes and waited for death. The sound of the weapon hitting flesh filled the area, Naruto waited for the pain, but it never came, he opened his eyes to see Iruka over him a small trickle of blood on his lips. "W-Why Iruka-Sensei, why did you stop it?" The chuunin sadly smiled at Naruto. "Because we are the same Naruto, you never had a family neither have I, I was alone, and I became a class clone just to be acknowledged. I wanted to have people see me so bad that I forced myself to be the laughing point. Your no demon Naruto, YOUR UZUMAKI NARUTO AN AMAZING PERSON, AND YOU ARE GOING TO BE AN AMAZING SHINOBIE AND THEN THE BEST HOKAGE." The scarred man was in tears by the end, his eyes fell like waterfalls. Iruka coughed blood as he tried to stand. "I-Iruka-sensei I am so sorry for what I did, I almost betrayed the village."
Iruka smiled kindly at Naruto, he coughed again the only difference the blood was thick. "Naruto, I don't think I am gonna make it out of this, please if you do follow your dreams and protect Konoha with all you might." after Iuka's eyes seemed faded but filled with happiness, as if he did something he long since wanted to do.
Iruka fell on the ground barely alive. Naruto saw his body hit the ground, heard the thud, the small of the crimson liquid filled his lungs. He Just wanted his Sensei and one of the closest people to him die, He Felt cold, empty, scared and most of all angry. Around Konoha the shinobi felt a dark, and primal feeling, the feeling only a demon could bring. It was the Kyuubi no Youko. The murderous intent radiated of the blond.
It was so overpowering, it felt like a fire raging through a dead forest, the Teal haired chuunin backed away from the Academy student. "D-Demon stay away from me, I knew you were nothing but the 9 tails. I will kill you then be seen as a hero. You will kn-ARGGHHHHHH" A fist connected to Mizuki's stomach, it was faster than he could react, strength that could have Tsunade in her chuunin days. His eyes were red with slits, his teeth were sharpened and had nails like claws. He snarled at Mizuki. "YOUR DEAD MIZUKI, YOU TOOK IRUKA-SENSEI, ILL KILL YOU!"
He was beyond livid, he was enraged as a coat of violent chakra engulfed his body, he lost all semblance to the kind child meet 10 minutes ago. He placed his hands in the Ram seal, 5 Narto's appeared with puffs of smoke. They all started an assault onto Miziki, the 2 on the sides ran first with sidekicks to the ribcage shattering them. The 2 in the inside of the formation jumped forward and grabbed both his arms holding them, their claws dug into his flesh hitting the bone shattering the area it touches, the kyubi's chakra ran through Blue haired chuunin's system poisonings him and causing intense pain.
The man Screamed out loud as he felt the red chakra course through his veins, it felt like fire pealing his flesh from the bones, The last clone Preformed kawarimi no jutsu with a log behind the group and sliced the back of the man's kneecaps severing the tendons and ligaments. He fell to his knees as a impending feeling of overpowering dread. The real Naruto walked to Mizuki slowly, the claws on his fingers grew to the size of 2 inches. Once he stopped walking, his eyes stared at the man with rage. In one quick motion it was through his chest. Naruto's hand was deep in his chest piecing his left lung. Mizuki coughed up blood looking at Naruto.
"W-w-why don't you just kill me, you demon, KILL ME!" Naruto scoffed at the man, he turned to Iruka. "N-n-no I won't, I refuse, I am going to be a shinobi of Konoha, I WILL PROTECT THE VILLAGE WITH MY LIFE, I WILL HONOR IRUKA-SENSEI'S SACRIFICE, YOU ARE A TRATOR I-I WILL BE SURE YOU FACE JIji." Naruto passed into unconsciousness. Luck have it that the anbu had been there as he finished his speech. "Rat grab Mizuki and take him back to a hospital under full watch, Beetle grab Naruto-san and the scroll, take him to the Hokage approved doctors, Cat grab Iruka and take him to the morgue." They all responded with hai and left in the blink of an eye. Cat following protocol checked Iruka's pulse then she felt a tiny beat. They quickly used a diagnostic jutsu to reform their check and saw Iruka open his eyes barely, almost all light had left them, and it was clear. He was moments from death. "A-A-Anbu-san, *cough* please tell Hokage-sama, t-that I promote Naruto. I-I want to give him my hiatal, he will surely carry on the will of f-fire..." With that, Iruka's body shred its last breath. The Anbu nodded and picked up Iruka.
*Later that evening in the counsel room. *
Hiruzen looked over the counsel room, He sighed as he glanced at the clan heads. They all had arrived and closed the doors just in time to stop the civilian council to get a foot in the door. Hiruzen raised his hand to silence and get the attention of all the heads. He coughed before speaking "Hello, I apologize for bringing you all at this late hour, it is of great importance and a shinobi only matter. It has to do with Naru-" Homura shouted "But it failed the exam The boy is a member of civilian council authority." Hiruzen smirked and spoke with a cheeky tone " Chūnin Iruka Umino, Naruto's sensei made him a shinobi." Homura shuddered before speaking "This can't be binding without the civilian council's approval, bring the Sensei." Hiruzen saddened for a moment before speaking "No it stands because he was his sensei, and he cannot be brought to the council due to his death." The entire room went silent as they thought. "This has to relate to Naruto stealing the Forbidden scroll of sealing." The entire room went silent as Shikaku lazily spoke. The 3rd Hokage nodded and let words spread from his lips. "Yes, and as the death of Iruka makes it a death order I will make sure it is carried through, Naruto saved the village and stopped a traitor, he is currently a hero to our village. I am finished with this meeting if you wish to speak with me, it will be another day." He finished his sentence with a release of killer intent showing it was now a mute point.
*THE NEXT DAY*
Naruto was in his home staring at the cup of instant ramen Infront of him. The 3rd came and spook to him, Naruto was given the option to stay a in the shinobi program or live as a civilian. He thought for a while but stopped when Hiruzen placed his hand on his shoulder and said, "My boy you do not need to give me an answer tonight, but I do need it by next week." Hiruzen walked to the door. Stopping halfway through it when he heard Naruto speak "Jij-Hokage-sama I accept and will join the shinobi program. I I owe it to Iruka-sensei, I want to protect the village, I will be the weapon for Konoha, I will make sure Iruka-sensei did not die in vain." Naruto spoke with a shaky voice but there was a conviction in it, one look in his eyes and Hiruzen knew he was serious, they were read with slatted pupil and tears ran down his face. This was when the 3rd Hokage realized this was the start of a new path.