We have investigated the nature and origin of the Fe K emission lines in Mrk~205 using observations with {it Suzaku} and {it XMM-Newton}, aiming to resolve the ambiguity between a broad emission line and multiple unresolved lines of higher ionization. We detect the presence of a narrow Fe K$alpha$ emission line along with a broad band Compton reflection hump at energies $E>10 rm , keV$. These are consistent with reflected emission of hard X-ray photons off a Compton thick material of $N_{rm H} ge 2.15times 10^{24} rm cm^{-2}$. In addition we detect a partially covering ionized absorption with ionization parameter $log(xi/rm erg, cm, s^{-1})=1.9_{-0.5}^{+0.1}$, column density $N_{rm H}=(5.6_{-1.9}^{+2.0})times 10^{22}rm cm^{-2}$ and a covering factor of $0.22_{-0.06}^{+0.09}$. We detect the presence of emission arising out of ionized disk reflection contributing in the soft and the hard X-rays consistently in all the observations. We however, could not definitely ascertain the presence of a relativistically broadened Fe line in the X-ray spectra. Using relativistic reflection model, we found that the data are unable to statistically distinguish between the scenarios when the super-massive black hole is non-rotating and when it is maximally spinning. Using the disk reflection model we also find that the accretion disk of the AGN may be truncated at a distance $6R_{rm G}<R<12R_{rm G}$, which may suggest why there may not be any broad Fe line. The Eddington rate of the source is low ($lambda_{rm Edd}=0.03$), which points to an inefficient accretion, possibly due to a truncated disk.
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