Goals from Ramon Funes Mori and Romelu Lukaku either side of Jesus Navas’s equaliser did the damage as the away side suffered a 2-1 defeat at Goodison Park.
Manuel Pellegrini believes that City deserved more and pointed to two decisions which went against his side as decisive to the final scoreline.
He declared: “The first goal was offside. He [Lukaku] was in front of Willy Caballero and it is unbelievable that the linesman did not see.
“If you aggregate the clear penalty that we should have had for Jesus Navas - both of these are clear observations that can change the score.
“It was a foul, it was clear – he took the legs of Jesus - it was a clear penalty.
“We didn’t deserve to lose in the first half – they scored a goal that was absolutely offside and then we were denied a clear penalty.”
Following a difficult 10 minute spell either side of half-time, City improved after the introduction of Navas in the 54th minute and started to stretch the Toffees backline.
The winger ended a 66-match goal drought, latching onto Sergio Aguero’s sublime assist and slotting coolly past Joel Robles in the Everton goal.
That away goal could turn out to be crucial in deciding which of these sides heads to Wembley for the final and, for that reason, Pellegrini is staying positive on City’s chances, despite Lukaku’s winning goal.
“It was important to draw level at the moment we did,” he reflected.
“We were playing better - but Lukaku is a dangerous player.
“We have only played 90 minutes - it is important not to concede another goal. We can progress if we play the way we normally play at home.”
