Hey there Ashutosh
Previouslyit was allowed
But recently identified this practice as fraudulent and abusive activities.
In order to enhance your organization's security, Microsoft is now limiting this functionality to only those customers who have paid Microsoft Entra P1/P2 license. Customers on trial license will not be able to create additional tenants from the Microsoft Entra admin center. Customers in this situation who need a new trial tenant can sign up for a Free Azure Account.
A recent hotfix now restricts tenant creation by requiring paid P1 or greater licenses. If the Entra ID P2 license is a trial license, that is not enough. Customers attempting to create tenants with trial P1+ licenses will also fail in creating tenants. I hope this helps.
https://learn.microsoft.com/en-us/entra/fundamentals/get-started-premium
If this helps kindly accept the answer thanks much.