How Gradle decides to use the proxy or not?

I am using Android Studio 0.4.6. Using a Home DSL network without any proxy. But Gradle still throws errors saying:

Failed to refresh Gradle project ‘BatchStepSensor’

Connection timed out: connect. If you are behind an HTTP proxy, please configure the proxy settings either in IDE or Gradle.

Any idea how to fix it?

Note that the message says if. This could also be some other network related problem.

I am able to use my IE 9.0: browse and download. I am able to use Android Studio 0.4.6 in an Ubuntu Machine in same newtoek. Not in Windows 7.

So what else these “if” cane be? Plz help to solve it.