It's a movie where a boy has sneaked in on this gathering of "witches" where he can see from his hideout how they 'peel off their skin' to reveal their evilness. The boy is frightened by the sight, and the witches can smell/sense/hear his presence in the room. What movie is this? Its from before 95 I would assume.

I think the movie you are looking for is The Witches: The Witches (1990 film) - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/The_Witches_(1990_film)?oldid=0)