Absolutely it can be done. It's just like any other audio punch in/out. Set your punch points and just do it. You arm the track as usual, with punch recording selected, and it automatically does it's thing.

You didn't mention the program you are using, but I know this is a given function in any DAW. I don't record audio in Band in a Box audio track nor do I use Real Band as my DAW so I can not speak to their ability to punch record.

I use it quite often in Cakewalk Sonar when I record midi piano or any other tracks where I hit the totally wrong chord in an otherwise flawless performance. Just rewind to right before it, set the punch points and play though it. I like to delete the bad parts first and then record it using punch. Super quick fix. In Sonar, as soon as you set your punch points, it automatically assumes you want to use punch in/out and when you hit record, it does what it's supposed to do. Doesn't matter if it's audio or MIDI. In Sonar you can select Sound on Sound to add notes in the same track, or overwrite mode to delete what was there before and lay down the new stuff in it's place.

If you don't have Sonar, it's still being offered free online.

You can find my music at:
www.herbhartley.com
Add nothing that adds nothing to the music.
You can make excuses or you can make progress but not both.

The magic you are looking for is in the work you are avoiding.