Night of Destiny
In the Name of Allah Most Gracious Most Merciful
'Answering Islam' 's allegation on regards to "When/how are the fates determined?" is found in :
He quotes :
Sura 97:3,4 says, "The night of power is better than a thousand months. The angels and spirit descend therein, by the permission of their Lord, with all decrees."
Sura 44:3 also says, "Lo! We revealed it on a blessed night."
Katz States :
>To Muslims, the "Night of Power" is a blessed night on which fates are settled >and on which everything relating to life, death, etc., which occurs throughout the >year is decreed. It is said to be the night on which Allah's decrees for the year are >brought down to the earthly plane. In other words, matters of creation are decreed >a year at a time.
Supposedly this is Contradicted by this :
Sura 57:22 says, "No affliction befalls in the earth or in your selves, but it is in a Book before we create it." This means it is written in the Preserved Tablet, being totally fixed in Allah's knowledge before anyone was created.
The Christians seem to think that the Quran is like the bible, it is not. Your arguments are unfounded that they are not supported by history or any theological view.
We read in the Holy Quran:
"Truly, We have revealed it in a blessed night. Truly, We have ever been warning against evil" (Al-Quran Chapter Al-Dhukan verse 4)
In this verse the Qur'an is stated to have been revealed in the blessed night which elsewhere is called "the Night of destiny" (97:2). According to authentic traditions of the Holy Prophet, the "Night of Destiny" falls in the last ten nights of Ramadan, the month in which the Quran began to be revealed (2:186), to be exact, on its 24th night (Musnad &Jarir).
We read the next verse presented by our Christians opponents:
"The Night of Destiny is better than a thousand months. Therein descend angels and the spirit by the command of their Lord with Divine decree concerning every matter" (Al-Quran Chapter Al-Qadr verses 4 and 5)
Instead of commenting on this verse also, I would like to make clear that there is no contradiction here between these two quotations and the others provided by those who have alleged it. Just a miscalculated mistake by overzealous Christian missionaries.
In the two quotations I have provided above we find that Allah is not talking about deciding the fates of people on the night of destiny, there is no evidence of this in the entire Quran. Our fate depends on what we do.
"And every man's works have We fastened to his neck; and on the Day of Resurrection We shall bring out for him for him a book which he will find wide open" (Al-Quran chapter 17 verse 14)
Allah in the previous two presented verses is telling us the significance of the "Night of Destiny" if we chose to live a pious and a righteous life then indeed we will have found favor with Allah and He will protect us from evils.
Anyways it did not surprise me that this allegation was made
And Allah Knows Best
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Quran's STUNNING Divine Miracles: 
Allah Almighty also promised in several Divine Prophecies that He will show the Glorious Quran's Miracles to mankind:
1- The root letters for "message" and all of its derivatives occur513 times throughout the Glorious Quran. Yet, all Praise and Glory are due to Allah Almighty Alone, the Prophets' and Messengers' actual names (Muhammad, Moses, Noah, Abraham, Lot etc....) were also all mentioned 513 times in the Glorious Quran. The detailed breakdown of all of this is thoroughly listed here. This Miracle is covered in 100s (hundreds) of Noble Verses.
2- Allah Almighty said that Prophet Noah lived for950 years. Yet, all Praise and Glory are due to Allah Almighty Alone, the entire Noble Surah (chapter Noah) is exactly written in 950 Letters. You can thoroughly see the accurate count in the scanned images.
Coincidence? See1,000s of examples . Quran's Stunning Numerical & Scientific Miracles.1] in both the OT and NT.