Edit in JSFiddle

angular.module('ExampleApp', [])
    .controller('DemoController', function ($scope, $http, $q) {
        
        $scope.timeout = 5;
        $scope.delay = 3
        
        function createData () {
             var result = "";
            
            result += "json=" + encodeURI(JSON.stringify({
                   text : [
                       "My timeout is ",
                       $scope.timeout,
                       " seconds and my delay is ",
                       $scope.delay,
                       " seconds."
                   ].join('')
               }));
            
            result += '&delay=' + $scope.delay
            
            return result;
        }
        
        function httpRequestHandler () {
            var timeout = $q.defer(),
                result = $q.defer(),
                timedOut = false,
                httpRequest;
            
            setTimeout(function () {
                timedOut = true;
                timeout.resolve();
            }, (1000 * $scope.timeout));
            
            httpRequest = $http({
                method : 'post',
                url: '/echo/json/',
                data: createData(),
                cache: false,
                timeout: timeout.promise
            });
            
            httpRequest.success(function(data, status, headers, config) {
                result.resolve(data);
            });

			httpRequest.error(function(data, status, headers, config) {
                if (timedOut) {
                    result.reject({
                        error: 'timeout',
                        message: 'Request took longer than ' + $scope.timeout + ' seconds.'
                });
                } else {
                    result.reject(data);
                }
            });
            
            return result.promise;
        }
        
        $scope.makeRequest = function () {
            $scope.status = 'Requesting';
            $scope.response = '';
            
            var httpRequest = httpRequestHandler();
            
            httpRequest.then(function (data) {
                $scope.status = 'Complete';
                $scope.response = data.text;
            
            }, function (error) {
                $scope.status = 'Error';
                $scope.response = error;            
            });
            
        };
        
    });

<div ng-app="ExampleApp">
    <div ng-controller="DemoController">
        <div class="status">Status: {{status}}</div>
        <div class="response">Response: {{response | json}}</div>
        
        <hr />
        <label>
            Delay: <input ng-model="delay" />
        </label>
        <br />
         <label>
            Timeout: <input ng-model="timeout" />
        </label>
        <br />
        <button ng-click="makeRequest()">Make Ajax Request</button>
        
        <p>Change the timeout to be less than the delay to observe timeout mechanics.</p>
    </div>
</div>