Srimad-Bhagavatam: Canto 11 - Chapter 1 - Verse 32

Sanskrit:

यदि स्म पश्यत्यसदिन्द्रियार्थंनानानुमानेन विरुद्धमन्यत् ।न मन्यते वस्तुतया मनीषीस्वाप्नं यथोत्थाय तिरोदधानम् ॥ ३२ ॥

ITRANS:

yadi sma paśyaty asad-indriyārthaṁnānānumānena viruddham anyatna manyate vastutayā manīṣīsvāpnaṁ yathotthāya tirodadhānam

Translation:

Although a self-realized soul may sometimes see an impure object or activity, he does not accept it as real. By logically understanding impure sense objects to be based on illusory material duality, the intelligent person sees them to be contrary to and distinct from reality, in the same way that a man awakening from sleep views his fading dream.

Purport:

A sane person can clearly distinguish between a dream experience and his real life. Similarly a manīṣī, or intelligent person, can clearly perceive polluted material sense objects to be creations of the Lord’s illusory energy and not factual reality. This is the practical test of realized intelligence.