Erroneous P tags being added before IMG tags

With this HTML IN THE DATABASE:

<div class="b">
<p>Go
<a class="c" href="#">
Here
</a>
</p>
<img src="foo.jpg" alt="Bar" />
</div>


The following is outputted:

<div class="b">
<p>Go
<a class="c" href="#">
Here
</a>
</p>
<p> <img src="foo.jpg" alt="Bar" />
</div>


The correct code is in the database so the tag is being added on output (I have ‘correct XHTML’ unchecked). I use CSS to display:block the IMG, so I don’t want to wrap it in p tags.