Bring a large pot of salted water to a boil and cook the penne pasta according to package instructions until just al dente. Drain and set aside.
Heat olive oil in a large skillet over medium-high heat. Add the diced chicken breast and season with garlic powder, onion powder, Italian seasoning, salt, and pepper. Sauté until the chicken is cooked through and lightly golden, about 5-7 minutes. Remove from heat.
In the same skillet, add the canned diced tomatoes with their juices and heavy cream. Stir well and bring to a gentle simmer over medium heat. Let it cook for 3-4 minutes until slightly thickened. Stir in the grated Parmesan cheese until melted and smooth.
Add the cooked pasta and sautéed chicken back into the skillet with the creamy tomato sauce. Fold in chopped fresh basil, reserving a little for garnish. Mix everything until well combined and the sauce evenly coats the pasta and chicken.
Preheat your oven to 375°F (190°C). Transfer the pasta mixture into a greased 9x13-inch baking dish. Sprinkle shredded mozzarella cheese evenly over the top. Bake uncovered for 20-25 minutes, or until the cheese is melted, bubbly, and golden.
Remove the pasta bake from the oven and let it cool for a few minutes. Garnish with the remaining fresh basil. Serve warm and savor every creamy, flavorful bite!