Hi Sreevidya,
I would recommend to reach out to concerned DCIT carrying all papers and get the status update. Tax office is currently running behind targets nowadays. So better to reach out to them physically and get the refund cleared from them. If DCIT told you about their intention to file appeal before high court, please note that CBDT vide instruction no. 17/2019 dated 8 August 2019 prescribed Rs. 1 crore as minimum threshold to file appeal by tax department before high court. So if original demand is less than Rs. 1 crore, department is not eligible to file appeal before high court irrespective of any reason.
Even after physical follow up if you are not getting any positive response, you can write to PMO office with all the details alongwith the follow-ups made so far. Facility is available online.
The final option available is to file a writ with high court but keep this as a last resort as involves litigation cost and routing through tax practicing advocate. Writ generally has favourable track record these days in similar cases.
Regards,
Manoj