It kinda depends on how you mean "based on"; the general design on Android may be based on DangerOS (or, it sounds like, any of the Java-based embedded appliances that were so popular back then), rather than GNU/Linux (because in this sense, it <i>couldn't</i> be based on "Linux"), but in the sense of implementation Android/Linux is absolutely based on a Linux kernel and even a quasi-unixy base userland before you get up to the not-really-a-JVM application layer.