The penalty itself was extremely harsh and Blackpool players surrounded the referee to claim Luke Wilkshire took a dive rather than going down after substitute Danny Coid's challenge.
It was a temperamental end to a tough game in which Blackpool had looked nothing like the team at the lower end of League One.
The Seasiders came out of the blocks the stronger and almost took the lead on 18 minutes when Keigan Parker crossed for Scott Taylor in the six-yard box but Bristol keeper Steve Phillips did brilliantly to save from point-blank range.
Bristol took the lead three minutes later through a free-kick on the edge of the area from the influential Wilkshire.
The Australian midfielder's curling effort beat his former Middlesbrough colleague Brad Jones who was a little slow to react to the effort.
Blackpool claimed the equaliser on the stroke of half-time through another contentious penalty when Matthew Hill appeared to push Jamie Burns.
Leading scorer Taylor stepped up and sent Phillips the wrong way to record his 12th goal of the season.
Both sides had chances in an equally lively second half with Blackpool defender Peter Clarke powerfully heading a Burns corner over the bar and, at the other end, Jones making a fine double save from Scott Murray and half-time substitute Paul Heffernan.
Bristol also had a goal chalked off when Leroy Lita's strike was adjudged to be offside.
But it was Bell, normally City's Mr Reliable, who had the final contribution with a dismal effort from his spot-kick which went flying over the bar and into the delighted Blackpool fans behind the goal.