from:
info pwd

one get:
`pwd' prints the fully resolved name of the current directory.  That
is, all components of the printed name will be actual directory
names--*none will be symbolic links*.

When you try the following:
mkdir dirA dirB
cd dirA
ln -s ../dirB/ lnkB
cd lnkB
pwd


you get:
dirA/lnkB

where lnkB is obviously a symbolic link and not an actual directory name.

Best Regards,
Eran Shaham