I have heard that there are Ulema who say Allah can lie but does not. However, I have also heard that Imam Sanusi deriving his conclusion from aql and naql denied that Allah can lie. Could you clarify?
Saying that Allah “can lie but does not do so” is a Mu`tazili doctrine. The creed of Ahl al-Sunna wal-Jama`a precludes such a possibility because it is impermissible to describe divine omnipotence as applicable to absurd or impossible propositions such as lying or doing wrong. Imam Sanusi whom you cited was Ash`ari, and this is also the position of the earliest and later Maturidis in their `aqida books and stated explicitly by al-Ṣābūnī in al-Bidāya min al-kifāya, al-Khabbāzī in al-Hādī, al-Samarqandī in the Rukniyya, al-Nasafī in al-Iʿtimād, Ibn al-Humām in the Musāyara, and Muḥammad Rāghib Bashā in Safīnat al-rāghib wa-dafīnat al-maṭālib (Bulāq: Dār al-Ṭibāʿat al-ʿĀmira, 1255/1839, p. 464) all of which are in print.
Hajj Gibril Haddad