The proof goes like: $rank(C^TAC) \le rank(A)$ and $rank(C^TAC) \ge rank\bigl((C^T)^{-1}C^TACC^{-1}\bigr)$. So $rank(C^TAC) = rank(A)$.
Why is $rank(C^TAC) \le rank(A)$??
The proof goes like: $rank(C^TAC) \le rank(A)$ and $rank(C^TAC) \ge rank\bigl((C^T)^{-1}C^TACC^{-1}\bigr)$. So $rank(C^TAC) = rank(A)$.
Why is $rank(C^TAC) \le rank(A)$??
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Because $\operatorname{rank}AB\leqslant\operatorname{rank}A$ and $\operatorname{rank}AB\leqslant\operatorname{rank}B$. This follows from the fact that$$\operatorname{rank}A=\dim\operatorname{Im}A.$$
So,$$\operatorname{rank}C^TAC\leqslant\operatorname{rank}AC\leqslant\operatorname{rank}A.$$