Concept:
Ajanta is one of the most important classical mural painting sites of India.
It is a UNESCO World Heritage Site and is famous for Buddhist paintings.
Step 1: Check Assertion (A).
Ajanta is a UNESCO World Heritage Site.
It has India's classical mural painting tradition.
Its paintings depict many themes such as Jataka stories, Buddha's life, royal scenes and devotional subjects.
Therefore, Assertion (A) is correct.
Step 2: Check Reason (R).
Reason says that Ajanta paintings depict the life stories of Buddha.
This part is correct.
But it also says that they appear to be Jain subjects.
This is not correct because Ajanta paintings are mainly Buddhist in nature.
Step 3: Final conclusion.
Assertion is correct, but Reason is not correct.
Hence:
\[
\boxed{\text{(C)}}
\]