Telnet is an Application layer protocol while TCP-IP layer lie beneath the application layer. TCP is chosen for Telnet because of connection oriented communication that involves IP addresses.
Telnet works on top of TCP/IP stack as it ensures reliable transmission of data across the internet and TCP is choses as it provides ports(port 23) which eases the communication.
Telnet operates on top of the TCP/IP stack because it ensures the reliable transmission of data across the internet. TCP is chosen because it provides ports (specifically, port 23) which facilitates communication.