Bhagavatapurana 11.22.42

11.22.42

indriyāyana-sṛṣṭyedaṃ trai-vidhyaṃ bhāti vastuni /
bahir-antar-bhidā-hetur jano 'saj-jana-kṛd yathā //

41. On account of the association with a new body of the mind to which all other senses are attached this three-fold distinction seems to be noted in the one real Atman. Atman so conditioned becomes the occasion for the idea of difference as the external and internal things (and so internal objects as well as happiness, misery and other states, just as a Jiva in dream creates and sees many bodies and himself and seems to be many. (Note:—The three-fold distinction may be taken as the best, the lowest and the middling, or, as Adhibhuta, Adhyatma, etc. The expression containing the simile may be interpreted also thus—like states in dreams or when indulging in fancies.