Preheat oven to 350oF (180oC).Oil a 8.5 inch (21 cm) diameter bundt pan and set aside. To a bowl, add sugar, water and lemon juice. Whisk until sugar is completely dissolved.
Then add oil and lemon zest and mix well.
Sift in flour, baking powder and baking soda.
Mix until dry flour is no longer visible. DO NOT OVER MIX (mix until dry and wet ingredients are just combined).
Spoon batter into prepared pan.
Bake in preheated oven to 350oF (180oC), rack middle position, 50 minutes, or until toothpick inserted in the middle of cake comes out clean.
Let cake cool down in pan for 10 minutes. Then transfer to wire rack to cool down completely.
In the meantime, prepare icing.To a bowl, sift in powdered (icing) sugar.Then add lemon juice and mix well. Pour icing over cooled cake and add lemon zest on top.