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...is a day of gathering. The word is derived from `aada / ya`oodu, the verb that means "he returned or he is returning" because people continuously return to [celebrating 'Eid] every year.
It is also said that the word is derived from `aadah, which means a custom or habit, because people have become accustomed to it. The plural of it is `ayaad.
Ibn-ul- 'Arabi said, "'Eid is named 'Eid because it returns every year with renewed happiness." (Lisan al-`Arab)
The renowned scholar Ibn 'Abideen said: "Eid days are thus named because Allah renews His bounties in them; and He distributes His blessings to His worshipers. Thus on Eidul-Fitr, He permits them to eat after having been restrained from food; and He requires paying sadaqatul-fitr (the charity of breaking the fast) to the needy.
"And on Eidul-Adha, He permits the completion of Hajj (pilgrimage) with the final tawaf (circulating around the Ka`bah); and He requires offering sacrifices and distributing their meat, etc.
"Also, it is customary for people to be joyful, happy, and to rejoicing during the Eid days." (Hashiyah Ibn Abideen)
* Quote (with some edits and changes) from an article on Rulings Concerning the Two Eids on SunnahOnline.
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