Breaking a block underwater doesn't show the breaking animation when standing above water.
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MC-2262 reports the same thing, except standing underwater rather than above it.

Is this still a concern in the current Minecraft version? If so, please update the affected versions in order to best aid Mojang ensuring bugs are still valid in the latest releases/pre-releases.

Aye, it's still in 12w49a.

Confirmed in 1.4.6

This ticket has been marked as a duplicate of MC-1379, in favor of the better description/information provided.