The Virginia Beach City Council has revoked a bingo permit it had approved last month after it discovered that an officer in the corporation had been convicted in the Bates Street housing scandal in Washington.

A day after the council issued the permit to Tidewater Community Development Corp., Virginia Beach police said, officials discovered that the corporation and one of its officers, George Holmes Jr., were being investigated for bingo fraud in Norfolk. They said they also found that Holmes had been convicted last year on an income tax charge in Washington in an outgrowth of his troubles as developer of the District's Bates Street housing project.

As a result, Virginia Beach Police Chief Charles R. Wall recommended last week that the permit, which had been approved but not issued, be revoked. He said Virginia Beach detectives are continuing to investigate Holmes.

Holmes pleaded guilty in August in Washington to filing a false federal income tax return. The government maintained that Holmes failed to report $122,000 in salaries and fees he took out of the $13 million redevelopment project that was to be the centerpiece of D.C. Mayor Marion Barry's housing program. Holmes was sentenced to six months in a halfway house and fined $5,000.