Can I get this matrix
\begin{bmatrix} 1&1&0\\ 0&0&1\\ 0&0&0 \end{bmatrix}
from the identity matrix $I_3$ like this:
\begin{bmatrix} 1&0&0\\ 0&1&0\\ 0&0&1 \end{bmatrix}
Add second row to first row. Then subtract second row from itself. Is the subtraction of a row from itself allowed?
No, you cannot subtract a row from itself!
Besides, your first matrix is not invertible, whereas the identity matrix is.
Valid row operations on a singular matrix (non-invertible) will never yield a non-singular (invertible) matrix, while valid row operations on an invertible matrix will always yield another invertible matrix.