We report the synthesis, structure and physical properties of a hitherto unreported brownmillerite compound Sr2ScFeO5. We have shown a new ordering sequence of the interlayer iron tetrahedral chains. Reduced dimensionality of the magnetic lattice and the frustration in the two dimensional iron tetrahedral chains originate complex magnetic and magneto-dielectric effects. Our study highlights a novel approach to tailor the magnetic lattice in bulk oxides.