The year is 1972, and the album is 'Machine Head' from Deep Purple.
The song 'Smoke On The Water' came about while the group was in Montreux, Switzerland recording an album.

While Deep Purple was in town, Frank Zappa and the Mothers of Invention were playing at the Montreux Casino.
During the performance, the casino caught fire when someone in the audience fired a flare gun into the ceiling.
That's where the line "some stupid with a flare gun" came from.
The casino burnt to the ground as we all know.
As for the title 'Smoke On The Water', Roger Glover says that it came to him when we woke from a dream, referring to the smoke from the casino fire as it spread over Lake Geneva.
The guys in the band were able to see the casino burn from their hotel.

Enjoy this version of 'Smoke On The Water' from 1973.