Unable to Access Local Snapshots when external Time Machine is disconnected

My local snapshots are behaving weirdly. When no Time Machine backup is connected and if I enter time machine, I get this prompt:

Your Time Machine backup disk can’t be found.

…but when my external Time Machine is connected, I can browse through both pink and white (local) coloured snapshots.

Another observation is if I go to

/Volumes

MobileBackups

/Volumes

Any help regarding this issue would be appreciated 🙂

I tried resetting time machine by deleting preference file (com.apple.TimeMachine.plist) and follow pondini's trouble shooting steps none of them seemed to help.

This is what my console says :

10/8/13 06:14:23.980 com.apple.mtmd[714]: Set snapshot time: 2013-10-08 06:14:25 +0100 (current time: 2013-10-08 06:14:23 +0100)

and Backupd :

10/8/13 05:59:48.139 com.apple.backupd[616]: Error -35 while resolving alias to backup target

10/8/13 06:00:51.696 com.apple.backupd[616]: Error -35 while resolving alias to backup target

10/8/13 06:00:59.127 com.apple.backupd[616]: Error -35 while resolving alias to backup target

10/8/13 06:01:09.118 com.apple.backupd[616]: Error -35 while resolving alias to backup target

10/8/13 06:06:39.989 com.apple.backupd[642]: Error -35 while resolving alias to backup target

10/8/13 06:07:33.287 com.apple.backupd[642]: Error -35 while resolving alias to backup target

I get that message everytime I try to enter local snapshot. But if I keep trying to enter time machine I am able to browse local snapshots 1/30 attempts, so the issue is quite intermittent

Something else also worth mentioning is that I also restored my OSX to rule out corrupted preferences, but this problem came back to life.