In a dramatic second half, the hosts went two goals to the good through strikes from Samir Nasri and Joleon Lescott, only to see Spurs fight; Jermain Defoe and Gareth Bale scored to level things up at 2-2.
The Italian forward replaced Edin Dzeko in the second period, and after picking up a yellow card appeared to stamp on Scott Parker, however this went unpunished.
After Defoe had missed a glorious opportunity to clinch victory for the visitors, Ledley King fouled Balotelli in the third minute of injury time to concede a penalty, which the substitute duly converted.
Redknapp feels Balotelli was lucky to have escaped dismissal, which changed the outcome of the game.
“It looked like a penalty, but the boy who scored the penalty shouldn’t have been on the pitch. He kicked Scott Parker in the head,” the White Hart Lane coach told Sky Sports.
“He does that quite often. It’s not right. He’s caught him and then he’s back-heeled him again in the face and cut his head.
“You can’t get away with things like that on the football pitch, the referee should be seeing that.
“He’s kicked him in the head, it’s there for everybody to see. I’m sure you’ve got it on the TV. No-one can make excuses that he didn’t do it, because anyone can see he did do it,” he stated.
Despite defeat Redknapp felt that his side put in a good showing, and can be proud of their efforts.
“It just proves to me that we’re as good as anybody. They weren’t better than us today.
“We were so close and looked the more likely team to win. I’m delighted with the players. It just shows how far we have come and where we can go from here. We’ve got a good team.
“We’ve been beaten 3-2 here knowing we shouldn’t have been beaten. It should be very easy to pick them up. They’ve proved to everyone today that they’re good enough to play against Man City,” he concluded.
Roberto Mancini’s men are now three points clear of Manchester United in second, and eight points ahead of Tottenham in third.
By Gareth McKnight