Hi AbdullahQ8,
first of all, if you have connected 6V at 1.2A in the CHARGE pin, it is WRONG! The maximum amperes should not be above 400 mA. But if you use 5 to 5,5 Volts, then you can use maximum 1 A.
The battery that you connect to VBATT pin should have the ability to give 2 A.
The voltage that drops to 3.9V is normal, because that is the right charging voltage for the battery. The module restarts continuously because the battery could not give at least 1,8 A. So you should use a battery with at least 1800 mAh. I guess that the 900 mAh battery that you use, could give only 0,9V -> it is not enough!
To see if the battery is charging, you could use the at command AT#CBC and AT+CBC (i am not completely sure about those commands, so check the appropriate guide)