On 2010 October 13, the X-ray astronomical satellite Rossi XTE, during the observation of the newly discovered accretion powered X-ray pulsar IGR J17480-2446, detected a lunar occultation of the source. From knowledge of the lunar topography and Earth, Moon, and spacecraft ephemerides at the epoch of the event, we determined the source position with an accuracy of 40 mas (1σ c.l.), which is interesting, given the very poor imaging capabilities of RXTE (~1°). For the first time, using a non-imaging X-ray observatory, the position of an X-ray source with a subarcsecond accuracy is derived, demonstrating the neat capabilities of a technique that can be fruitfully applied to current and future X-ray missions.