Regression with QSettings ini file

With 1.3.1 QT Creator debugger, below code works ok.
"QSettings settings("Test.ini",QSettings::IniFormat);
value = settings.value("item1","").toString();"

With 1.3.83 the code is not working, "item1" is not found.
I tried Test.ini file to be located in project root folder and in debug folder.
Test.ini file contents are like this:
[General]
item1=data

The code seems to be working ok when built with 4.7.0-Beta for Symbian.

It seems that debugger creates "-build-desktop" folder in parallel of project folder. If ini file is saved in that "-build-desktop" folder then it works. Why is that "-build-desktop" folder created and why it is not project's subfolder?