One of my friend said Allah is time and i argued it is shirk to say such a thing but he insist it is supported by sunnah. since time is a creation of Allah, it is like saying Allah is water another creation of his. What is the Islamic view on this ?
ad-Dahr is one of Allah's names that we know through Hadith Qudsi, and it's not a creation of Allah.
ad-Dahr is something that is infinite, i.e. it has not beginning or end. It cannot be measured. Sort of like an eon, but not exactly.
ad-Dahr is different from what we call as the measurement of time - waqt/zaman
So the issue is in the interpretation of ad-Dahr = Time, and mixing the definitions.
ad-Dahr isn't a creation of Allah because Allah is ad-Dahr as it comes in several hadith:
"Allah said, "The offspring of Adam abuse ad-Dahr, and I am the Dahr; in My Hands are the night and the day."
Sahih al-Bukhari and others
Prophet said "None of you should say, 'May ad-Dahr be disappointed. Allah is ad-Dahr."
Sahih al-Bukhari/al-Adab al-Mufrad and others
There are a few more in Musnad Ahmed where Allah clearly said "I am ad-Dahr"
ad-Dahr is THE Time and not time how we perceive it.
Waqt/Zaman is the creation of Allah that you're referring to, and it's relative to how we measure it.
You can probably say ad-Dahr is what controls waqt/zaman.
Some may object and mention the ayah about what the pagans said as it comes in Surah al-Jathiya 45:24:
And they say: "There is nothing but our life of this world, we die and we live and nothing destroys us except Ad-Dahr. And they have no knowledge of it, they only conjecture.
But as you can see, they didn't believe Allah was ad-Dahr and separated ad-Dahr from Allah, even though Allah is ad-Dahr. They had no knowledge of it. They blamed ad-Dahr, yet they rejected Allah.