German U-Boat off Gower

Did this happen Easter Monday 1940?

Off the Gower Coast, during 1940, that a German U-boat was sunk by Skipper George Lilley RNR.  the submarine suddenly surfaces in front of his vessel, Lilley was able to put a shot into the U-boat.  Afterwards, Lilley stated

"The bows rose vertically some 10 feet out of the sea.  He fired another shot into the bows and the submarine sank like a stone.  He regretted not being able to capture her whilst disabled but he felt he could not risk her getting away.  There were no survivors"

However this account is disputed, based on the fact that U-boats did not operated that far up the Bristol Channel at that time.  Probably what Lilley shot at was a bow of an underwater wreck, surfacing unexpectedly.

Is there any truth in this mysterious German U-boat? 

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