Idadvertant Time Out!!

[Burtis449]

National Federation clearification please.
Team "A" has the ball when the coach of team "A" makes a signal to his/her team on the floor that looks like a "time out signal"!!
An official on the floor signals TIME OUT "A".
The coach says that he does not want time out since the signal picked up by the referee was not a time out signal but some sort of play he wanted his team to run at that time in the game.
What do yiu do?
I know that the logical thing would be to just negate the time out and move on with the rest of the game. However, this is not a correctable error so maybe the time out must be assessed against team "A" against their will. Not a good situation for the team or the referee.
Can some one clear this up and maybe get me a case book reference to look at. I could not find this instance and it happened in a state playoff game.
FYI the referees just negated the time out and moved on. Were they correct (by rule) in handling it that way?