DAV-SZ1000W, HBD-SZ1000W (serv.man2) - Sony Audio Service Manual (repair manual). Page 28

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When utilizing HBD-SZ1000W unit to output the audio output from TV, generally 
the audio signal from TV is returned to the unit by connecting an audio cable. 
However, if the TV connected by HDMI Cable has Audio Return Channel (ARC) 
function, there is no need to connect an audio cable to return the TV audio signal 
t th
it
to the unit.
Digital audio signal form TV is sent to the unit via connected HDMI Cable. In 
addition, when [CONTROL FOR HDMI] is set to [ON] and  [AUDIO RETURN 
CHANNEL] is set to [AUTO] in the HDMI configuration, it checks if connected TV 
has ARC function by signal communicating via HDMI Cable, and it switches 
automatically.
1. Digital audio signal form TV(SPDIF) is input to the HDMI terminal(CN1701 14pin) 
and then input to the BUFFER(IC1001 1pin).
2. The SPDIF signal is output to the DIR(IC6001 2pin), then Optical Digital Audio as 
external input data is selected by control signal form MTK IC(IC1101). And then 
the digital signal is sent to the MTK IC(IC1101) and it will be output to the AMP
the digital signal is sent to the MTK IC(IC1101), and it will be output to the AMP 
circuit. After this step, circuit operation is as same as described in disc audio 
output operation.
3. When TV does not have ARC function, digital audio form TV is input to TV 
DIGITAL IN OPTICAL terminal via an optical cable, and then sent to DIR(IC6001). 
(See 4-6)
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