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Explainable AI (XAI) aids in deciphering 'black-box' models. While several methods have been proposed and evaluated primarily in the image domain, the exploration of explainability in the text domain remains a growing research area. In this paper, we delve into the applicability of XAI methods for the text domain. In this context, the 'Similarity Difference and Uniqueness' (SIDU) XAI method, recognized for its superior capability in localizing entire salient regions in image-based classification is extended to textual data. The extended method, SIDU-TXT, utilizes feature activation maps from 'black-box' models to generate heatmaps at a granular, word-based level, thereby providing explanations that highlight contextually significant textual elements crucial for model predictions. Given the absence of a unified standard for assessing XAI methods, this study applies a holistic three-tiered comprehensive evaluation framework: Functionally-Grounded, Human-Grounded and Application-Grounded, to assess the effectiveness of the proposed SIDU-TXT across various experiments. We find that, in sentiment analysis task of a movie review dataset, SIDU-TXT excels in both functionally and human-grounded evaluations, demonstrating superior performance through quantitative and qualitative analyses compared to benchmarks like Grad-CAM and LIME. In the application-grounded evaluation within the sensitive and complex legal domain of asylum decision-making, SIDU-TXT and Grad-CAM demonstrate comparable performances, each with its own set of strengths and weaknesses. However, both methods fall short of entirely fulfilling the sophisticated criteria of expert expectations, highlighting the imperative need for additional research in XAI methods suitable for such domains., Comment: Preprint submitted to Elsevier on Jan 5th, 2024