I realise this doesn't directly answer your question, but you might consider using this instead of the method in your example:
public static bool IsDescendantOf<T>(this object o)
{
if(o == null) throw new ArgumentNullException();
return typeof(T).IsSubclassOf(o.GetType());
}
So you can use it like this:
C c = new C();
c.IsDescendantOf<A>();
Also, to answer your question about the difference between Type.IsSubclassOf and Type.IsAssignableFrom - IsAssignableFrom is weaker in the sense that if you have two objects a and b such that this is valid:
a = b;
Then b.GetType().IsAssignableFrom(typeof(a)) is true - so a could be a subclass of b, or an interface type.
In contrast, a.GetType().IsSubclassOf(typeof(b)) would only return true if a were a subclass of b. Given the name of your extension method, I'd say you should use IsSubclassOf instead of IsAssignable to;