They used it on live concerts occasionally.
Listen to this Live Version of California Saga: California from 1974 Live in Milwakee Wisconsin. Very large presents of a Sitar. It is pretty good live version! Give it a listen!
https://youtu.be/vSKIQvubgDQIs this just an electric guitar too then at this concert???
Now, THAT really DOES sound like an electric sitar! I haven't listened to the whole song yet to see if there's also a pedal steel part, like there normally was on that song at that time (played by Ricky). If so, I would say Al is maybe playing the electric sitar for his normal banjo part - or perhaps a banjo through a chorus/phase effect that gives it the illusion of an electric sitar. Otherwise, my guess would be that Ricky is for some reason playing an electric sitar here, rather than his normal pedal steel. I recall that on the tape of the Nassau, Coliseum show from that same year, the opening song ("Wouldn't It Be Nice") benefited from some unidentifiable "twangy" stringed-instrument sound. Could that also be an electric sitar? If so, that would an a quite fascinating dimension to this era of the live band!