Legit question regarding building muscle and calories

Muscle and fat are two completely different types of cells... your body can in no way convert one to the other. Your body cannot convert muscle into fat and you cannot convert fat into muscle.

It is possible to gain muscle and lose fat, if as previously mentioned, you have a high enough protein intake and relatively low carbohydrate intake. This will "force" your body to become more efficient at using dietary fat (even your own adipose tissue) as fuel to support muscle gain. Check out this thread from Dr. John Berardi's Precision Nutrition. I have gone through his certification program (I am a Personal Trainer certified through NASM as well as precision nutrition among other organizations) and I can attest to the effectiveness.

http://www.precisionnutrition.com/members/showthread.php?t=28020