I hold an Indian passport and a Canadian permanent residency.?
Yes you can. Having a valid visa from Canada exempts Indian citizens from having an airport transit visa for Germany which is otherwise required to make an airside transit through a German airport. But make sure the transit is an airside transit. Your ticket should be a single ticket with the luggage checked through. A Canadian visa (or PR) does not however allows an Indian citizen to pass through border control in Germany. So you can't buy two separate tickets, one till Germany and one from Germany to Canada and be able to travel that without a visa. Even if you don't have checked luggage, boarding will be denied in India because the passenger will not have valid documentation to enter the destination on the ticket, which would be Germany. So make sure the ticket is a single ticket with Canada as the final destination.