If you are working out and becoming stronger but not losing the fat that lies on top of the muscle what can you do?

First of all i need to determine your workout habits. your weight balance, before and after.

What do you intend to mean by "Work-out"? Is it only related to gym activities or does it also includes exercises.

There can be various reasons varying from the pattern of your exercise, timing of your eating habits but i would need to know more details in order to give you a specific solution.

But generally only working out in the Gym doesn't burn your fat. You have to contemplate it with exercise routine e.g. Jogging, Swimming before you workout. You are right that you feel stronger but this is as simple as unless you exercise where will the body fat go. working out doesn't burn it.

Fat burning exercises include: walking jugging, running, cycling and swimming. To burn fat effectively, exercise at a moderate pace for a long period (20- 60 min). These aerobic fat burning exercises increase your motabolism, meaning you'll burn calories long after you exercise.