Is it possible to gain muscle and lose fat on a low calorie diet?

Is it possible for a person with a high percentage of body fat gain muscle and lose body fat on a low calorie diet. I have been eating right and lifting weight for about 6 weeks now. I see an improvement in my strenght and people have told me i am losing wieght but i have only lost four pounds

Use the Lil Jack workout http://www.youtube.com/watch?v=TKCGe2Ezris

Secret Weapon to Build Muscle and Burn Fat At Home Fast