I want to calculate Holidays for an employee

For Eg. Holiday company has given is on 10.12.2008.

Now if the employee comes to work on 9.12.2008 and 11.12.2008 he is marked present on 10.12.2008 and is given 1 holiday (not 3 as 9.12.2008 and 11.12.2008 are working days)

If the employee comes either on 9.12.2008 and remains absent on 11.12.2008 OR he remains absent on 9.12.2008 and comes on 11.12.2008 he is again marked present on 10.12.2008 and is given 1 holiday. (not 2 as he has worked either on 9.12.2008 or 11.12.2008 as being working days)

BUT if the employee does not come on 9.12.2008 OR 11.12.2008 he is marked ABSENT on 10.12.2008 and is not given the holiday benefit.

You provide logic, but no context to give you an answer. So, if you just want to see how some COUNTIF() and IF(AND() formulas can accomplish what you've described, I've attached a book to give you an inkling.