That is total crap, questions. The challenge work should take the place of the work he has mastered, not in addition to.
Don't automatically assume they are just being jerks, they may honestly just not get it.
Don't take this sitting down.
Ask for a meeting with the teacher, and explain the situation.
I gave DD's teacher her WIAT achivement test results with GE. I had previously asked her, what is DD supposed to learn to get to the next grade and does she already know it?
I honestly don't think they had thought about it like that. And I would go so far as to tell them it isn't fair to make a child keep doing work THEY HAVE ALREADY MASTERED. My goodness. They give all the kids "tests" at the end of the year to see if they know the material. Ask for your son to be tested out of the material now. I really think they think that they get the whole GT thing, but they don't understand a GT kid that is 2 years or more ahead, it just doesn't seem to compute.
Right now, DD8 has extra work in lieu of what she has already mastered and if she had to deal with your son's situation, it wouldn't be pretty.
I don't think there is any quicker way to extinguish a child's love of learning than the scenario you just menioned. Get in there, girl and talk to teacher, principal, district person, whatever you have to do.

Good luck,

Incog