The question is not pretty clear to me. I think you are asking that Report Program A is calling another Report Program B through SUBMIT command. In Report Program B there is a call transaction Command. This will work fine provided it is not calling Report A otherwise it would give a Session Error.
If report program A calls Report Program B through SUBMIT and Report B itself calls Report A through Call transaction then I think it will not go for an indefinite iterations.
Reason: Call transaction actually calls a screen and all we know that SAP can create a maximum of Six (6) screens. So the process will run for maximum of Six screen generation. Then it will give a session error i,e. Maximum Session is reached.