Narrative:

Controller said altitude deviation shown on my mode C. I was straight and level and did not deviate from assigned altitude. Just got plane out of avionics shop and possible mode C malfunction occurred. Was vectored over water near cty to nitts intersection when told about deviation.

Google
 

Original NASA ASRS Text

Title: DISCREPANCY IN ALT READOUT AT ATC, BUT RPTR PLT SAYS HE DID NOT DEVIATE FROM THE ASSIGNED ALT. THE ACFT HAD JUST BEEN IN THE AVIONICS SHOP AND THE XPONDER MODE C MAY HAVE BEEN ERRONEOUS.

Narrative: CTLR SAID ALTDEV SHOWN ON MY MODE C. I WAS STRAIGHT AND LEVEL AND DID NOT DEVIATE FROM ASSIGNED ALT. JUST GOT PLANE OUT OF AVIONICS SHOP AND POSSIBLE MODE C MALFUNCTION OCCURRED. WAS VECTORED OVER WATER NEAR CTY TO NITTS INTXN WHEN TOLD ABOUT DEV.

Data retrieved from NASA's ASRS site as of July 2007 and automatically converted to unabbreviated mixed upper/lowercase text. This report is for informational purposes with no guarantee of accuracy. See NASA's ASRS site for official report.