Skin chicken. In a large skillet brown chicken on all sides in hot oil over medium heat about 15 minutes, turning occasionally. Remove chicken from skillet, reserving drippings in skillet; set chicken aside.
Add mushrooms, onion, and garlic to drippings in skillet. Cook and stir about 5 minutes or until vegetables are just tender. Return chicken to skillet.
Meanwhile, in a medium bowl combine undrained tomatoes, tomato paste, wine, sugar, Italian seasoning, salt, and pepper. Pour over chicken in skillet. Bring to boiling; reduce heat. Simmer, covered, for 30 to 35 minutes or until chicken is no longer pink (170 degrees F for breasts; 180 degrees F for thighs and drumsticks), turning once during cooking. Sprinkle with parsley. If desired, serve over hot cooked pasta. Makes 6 servings.