Bitter Rivals and Broken Bonds

is episode 108 of the original Naruto anime.

Synopsis
As Naruto and Sasuke are about to clash, Kakashi Hatake appears and deflects them into differing water towers. Admiring the damage his attack has done to his water tower, Sasuke believes himself to be stronger than Naruto. On closer inspection, he finds Naruto's tower to be considerably worse off, and only comes to envy Naruto's strength more. Kakashi takes Sasuke aside and lectures him about not attacking friends. While Sasuke only half-listens to Kakashi's words, the arrival of Orochimaru's Sound Four erases Kakashi's message from his mind.