First I'll address the LED side of it. Don't keep what you have. (Well, the parts are there but the connections are incomplete and the resistor is far too low in value.) Read what MikeMl and I wrote. Do you have the specs of the IR LED you're using? Because as drawn, the circuit will do nothing since the LED has no current return path. And if you add a current return path to the power supply's 0V line as you should, and the power supply really is 12V, your LED will explode. You need to connect the LED's cathode and you really need to raise the value of the current limiting resistor from 10Ω to something much higher.
For the receiver side, I would add another transistor and use that to light a visible LED when the phototransistor detects something from the IR LED.
You will also need to be careful to shield the phototransistor from ambient light--the light from the windows/overhead lights/whatever will interfere and make it trigger even when it's not getting anything from the IR LED.
How much time do you have for this project?
Regards,
Torben