Hello Aniketdey9804@gmail.com ,
the second method is more granular allowing for fine control of what component routes are propagated to backbone area.
When using the area range with the not-advertise all component routes are filtered.
The area x filter-list command uses a prefix-list to decide what prefixes are allowed and what are denied.
Note: this type of inter area filtering applies only to internal routes LSA type 1 to 3. External routes are not affected by this filtering and their propagation or not depends on area type ( normal, stub or NSSA)
Hope to help
Giuseppe Larosa