Wideband acoustic source localization is a challenging task especially in the presence of noise. Generally wideband source localization is done by averaging the Direction of Arrival (DOA) estimates obtained over multiple frequencies or narrow subbands by the method of frequency smoothing. Localization of multiple wideband sources which are correlated is even more challenging. In this work acoustic source localization under these challenging conditions is addressed. A sparse reconstruction framework is developed for wideband source localization in the Spherical Harmonics (SH) domain. The proposed framework jointly computes both the azimuth and elevation. In contrast to earlier methods of source localization in SH domain this work utilizes the expression for the SH coefficients of the amplitude density of the plane wave, to develop the sparse reconstruction framework. An expression for Cramer Rao Lower Bound (CRLB) on the DOA using this framework is also derived for the wideband sources. This CRLB is shown to easily generalize for narrowband sources as well. The performance of the proposed method is compared with MUltiple Signal Classification in SH domain (MUSIC-SH) and Steered Response Power in SH domain (SRP-SH). The performance is evaluated for correlated narrowband and wideband sources through simulations, conducting experiments in an anechoic chamber and under reverberant conditions. Using the proposed framework, it is shown that correlated narrowband and wideband sources can be resolved reasonably well when compared to conventional methods of acoustic source localization in SH domain.