Understanding Section 92 of the Indian Evidentiary Act

Okay, bhai, let's talk about Section 92 of the Indian Evidentiary Act. Textbooks explain it as "Admissions not relevant if made under a mistaken belief of facts". But what does this even mean? Can someone explain with a real-world example? Like, my friend's uncle was killed in a road accident, and the accused was found with the victim's phone. The accused said, "I found this phone on the road". But, bhai, the prosecution says this is an admission under a mistaken belief of facts as the accused thought he found the phone on the road, but in reality, he took it from the victim. So, is this a valid example of Section 92? Help me understand this!!