A family class inland application requires that sponsor and applicant must be living together in Canada during the entire duration of processing. If CIC learns you are not cohabiting with your sponsor, or that you are not residing in Canada, they can simply cancel your app.
http://www.cic.gc.ca/english/resources/manuals/ip/ip08-eng.pdf
5.28 Applicants who leave Canada before a final decision is taken on their application for permanent residence
A foreign national becomes a permanent resident, if following an examination, it is established
that they meet the selection criteria and other requirements applicable to that class as per
R72(1)(d). Members of the Spouse or Common-law Partner in Canada class must satisfy
subsection R124(a) in that they must be the spouse or common-law partner of a sponsor and
must be co-habiting with that sponsor in Canada.
Foreign nationals who have left Canada after submitting an application under the Spouse or
Common-law Partner in Canada class, are not provided with any guarantees that they will be
allowed to return to or re-enter Canada. If they are unable to do so, their application for
permanent residence may be refused because they are not cohabiting with their spouse or
common-law partner at the time the case is finalized [R72(1)(d) and R124(a)].
It may therefore be appropriate to counsel applicants who are outside Canada to withdraw their
spouse or common-law partner in Canada class application and, with the sponsor, submit a new
Application to Sponsor, Sponsorship Agreement and Undertaking to the CPC-Mississauga (CPCM).