Can we create a view based on another view

If you are asking about view chaining, the answer is "yes". 

This view chaining is also known as nested views. 

Things you need to keep in mind:

• Performance impact - a deeply nested view can become slow and difficult to debug because SQL Server must expand the definition at runtime. 
• Column name dependencies - changing column names in the first view may cause the dependent view to break. 
• Best practice - avoid long chains of view; if you must chain, then keep the logic simple in each layer.