said by BHNtechXpert:
Yep Nayan you are correct. HDMI trumps all when connected however like I said you can continue HDMI to the TV and use the optical out on the TV to your AV setup and it works fine.
That is the setup I have always used. The HDMI on my receiver died so I've been using optical or coax out to the receiver for audio and HDMI to the TV.