01 - Preheat oven to 400°F. Lightly grease a baking dish large enough to hold the cod fillets in a single layer.
02 - Pat cod fillets dry and season both sides with salt and pepper. Drizzle with 1 tablespoon olive oil.
03 - In a medium saucepan, heat 2 tablespoons olive oil over medium heat. Add onion and sauté until soft and translucent, about 4 minutes.
04 - Add garlic and cook for 1 minute until fragrant.
05 - Stir in crushed tomatoes, tomato paste, sugar, oregano, red pepper flakes, salt, and pepper. Bring to a simmer and cook for 8-10 minutes, stirring occasionally, until slightly thickened.
06 - Remove from heat and stir in chopped basil.
07 - Spread half of the tomato basil sauce over the bottom of the prepared baking dish. Arrange cod fillets on top. Spoon remaining sauce over the fillets.
08 - Bake for 15-18 minutes, or until the cod is opaque and flakes easily with a fork.
09 - Garnish with fresh basil and serve with lemon wedges if desired.