Counters are defaced by kids given a hand (7)
I believe the answer is:
retorts
'counters' is the definition.
(I've seen this before)
'are defaced by kids given a hand' is the wordplay.
'defaced' means to remove the first letter (the word with its face removed).
'by' is a charade indicator (letters next to each other).
'kids' becomes 'tots' (tot is a kind of kid).
'given' indicates putting letters inside.
'a hand' becomes 'R' (abbreviation for right, as in the right-hand side).
'are' with its initial letter taken away is 're'.
'tots' placed around 'r' is 'torts'.
're'+'torts'='RETORTS'
(Other definitions for retorts that I've seen before include "Counters" , "laboratory equipment" , "Sharp replies or rejoinders" , "Makes witty or angry reply" .)