OP is drawing a BufferedImage, and that is not a Component.
You are overriding the 'paint' method. That is something that you should not normally do, although in this case it doesn't matter.
Paint does three things: it invokes the method 'paintComponent', in which you would do your user drawings, then it invokes the method 'paintBorder', that draws a border if any, and lastly it invokes the method 'paintChikldren', that draws all your labels, buttons et cetera. So, in normal circumstances you only should override the 'paintComponent' method.
You use two BufferedImages to rotate your image. Nothing wrong with that, but you can draw your image also directly to your panel, where you do a rotation in the Graphics2D of the panel. That would simplify your code a little.
I just created an example where I override the 'paint' method, to give an example where overriding the paint method is useful. I created a JLabel that contains the image, and centered the label in its panel. Then I override the paint method of the panel, where I first invoke the two methods 'paintComponent' and 'paintBorder', then I create a Graphics2D that I give a rotation, and with this g I invoke 'paintChildren'. As a consuquence, the JLabel with the image is then rotated.
This is only a demo, of course, it has no practical value.