Databases for reporting and daily transactions

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I have a system that holds some big amount of data. The database used is SQL Server. One of the tables have around 300000 rows, and there are quite a few number of tables of this size. There happens regular updates on this table - we say this as "transactional database" where transactions are happening.

Now, we need to implement a reporting functionality. Some of the architect folks are proposing a different database which is a copy of this database + some additional tables for reporting. They propose this because they do not want to disrupt the transactional database functionality. For this, data has to be moved to the reporting database frequently. My question here is, is it really required to have second database for this purpose? Can we use the transactional database itself for reporting purposes? Since the data has to be moved to a different database, there will be latency involved which is not the case if the transactional database itself is used for reporting. Expecting some expert advice.

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