I have used both but what I am not clear is when I should prefer one over the other. I mean I know stored procedure can take in parameters...but really we can still perform the same thing using Views too right ?
So considering performance and other aspects when and why should I prefer one over the other ?
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Well, I'd use stored proc for encapsulation of code and control permissions better.
A view is not really encapsulation: it's a macro that expands. If you start joining views pretty soon you'll have some horrendous queries. Yes they can be JOINed but they shouldn't..
Saying that, views are a tool that have their place (indexed views for example) like stored procs.
