Near-infrared diffuse optical tomography (DOT) technique has the capability of providing good quantitative reconstruction of tissue absorption and scattering properties with additional inputs such as input and output modulation depths and correction for the photon leakage. We have calculated the two-dimensional (2D) input modulation depth from three-dimensional (3D) diffusion to model the 2D diffusion of photons. The photon leakage when light traverses from phantom to the fiber tip is estimated using a solid angle model. The experiments are carried for single (5 and 6 mm) as well as multiple inhomogeneities (6 and 8 mm) with higher absorption coefficient in a homogeneous phantom. Diffusion equation for photon transport is solved using finite element method and Jacobian is modeled for reconstructing the optical parameters. We study the development and performance of DOT system using modulated single light source and multiple detectors. The dual source methods are reported to have better reconstruction capabilities to resolve and localize single as well as multiple inhomogeneities because of its superior noise rejection capability. However, an experimental setup with dual sources is much more difficult to implement because of adjustment of two out of phase identical light probes symmetrically on either side of the detector during scanning time. Our work shows that with a relatively simpler system with a single source, the results are better in terms of resolution and localization. The experiments are carried out with 5 and 6 mm inhomogeneities separately and 6 and 8 mm inhomogeneities both together with absorption coefficient almost three times as that of the background. The results show that our experimental single source system with additional inputs such as 2D input/output modulation depth and air fiber interface correction is capable of detecting 5 and 6 mm inhomogeneities separately and can identify the size difference of multiple inhomogeneities such as 6 and 8 mm. The localization error is zero. The recovered absorption coefficient is 93% of inhomogeneity that we have embedded in experimental phantom.