HT1430 itunes is displaying "we're sorry, we are unable to continue with your activation at this time"

i am trying to activate my phone but itunes is working properly.

Hi, prajwal.raj97. 
Here is an article I would recommend when experiencing issues activating a device.  The step referring to recovery mode usually resolves the issue.
iPhone: Troubleshooting activation issues
http://support.apple.com/kb/TS3424
To retrieve your data, you will need to restore from backup after processing these steps.  Here is the article that walks you through restoring from either your iCloud or iTunes backup.
iOS: How to back up and restore your content
http://support.apple.com/kb/HT1766
Cheers,
Jason H.

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