Taken from the Wikipedia article on transverse Doppler shift:
Sometimes the question arises as to how the transverse Doppler effect can lead to a redshift as seen by the "observer" whilst another observer moving with the emitter would also see a redshift of light sent (perhaps accidentally) from the receiver.
It is essential to understand that the concept "transverse" is not reciprocal. Each participant understands that when the light reaches them transversely as measured in terms of that person's rest frame, the other had emitted the light afterward as measured in the other person's rest frame. In addition, each participant measures the other's frequency as reduced ("time dilation"). These effects combined make the observations fully reciprocal, thus obeying the principle of relativity.
